Crypto exchange Binance had recently announced the suspension of direct fiat deposits and withdrawals on its platform for users in Brazil due to problems with its payments partner. Now, the exchange has selected a new partner, as it announced that it has chosen to work with Latam Gateway. The company has been offering payment processing services since 2019. The announcement from the exchange said that it was working on resuming deposits and withdrawals quickly.
New payments partner
One of the largest crypto exchanges in the world due to its trading volume, Binance announced its new partnership for solving the problem of fiat movements that its clients in Brazil are facing. According to the exchange, it has opted to engage with payments processing firm Latam Gateway and will no longer be working with Banco Capitual, its earlier partner.
The exchange disclosed in a blog post that Latam Gateway had been introduced by executives who have experience in the field of payments processing since 2014. The founders of the company were also behind another payment processing company named Boa Compra.
Binance asserted that Brazil was a very important market for the exchange and that they fully intended to expand their services for catering to local users and also contributing to the development of the crypto and blockchain ecosystem in the country.
This partnership is a temporary measure for the exchange as it wants to ensure its users are able to use its platform as per routine. Meanwhile, Binance is working on acquiring a company named Sim;paul, which is regulated by the Brazilian securities watchdog.
Earlier this month, the problem with fiat deposits and withdrawals had begun to happen on the Binance platform in Brazil. Its former payments partner, Banco Capitual had begun to implement tougher KYC protocols, as they had to make changes in order to comply with the requirements put forward by the country’s central bank.
Binance had stated that it would take legal action against Capitual and the company also fired back at the exchange. It said that the changes implemented were in accordance with the Central Bank of Brazil’s requirements and Binance had failed to adapt to them. Capitual also offers its payments processing services to other crypto exchanges in the area including Huobi and Kucoin. The company asserted that these other exchanges had adapted to the new changes in order to comply with the requirements.
The crypto exchange is hoping to integrate the services of Latin Gateway on its platform quickly in order to ensure that its clients in Brazil are able to make their deposits and withdrawals in fiat without any issues. While these are still not available to people, the users do have the option of using alternative methods of payment to get their funds.
In other news, Binance also entered a deal with renowned football icon, Cristiano Ronaldo for bringing web3 and non-fungible tokens (NFTs) and promoting them to global users. The exchange is also planning on hiring new employees, while other platforms are letting them go.