This week, Binance announced that it was suspending direct withdrawals and deposits in Brazil. According to the statement issued by the crypto exchange, this was because of a change in its payments partner in Brazil. It also said that they would take legal steps against the payments partner. In response, the partner stated that the exchange had not complied with the KYC (Know Your Customer) requirements that had been imposed by the central bank in the country.
Binance Stops Real Payments
All real-based direct deposits and withdrawals in Brazil have been suspended on the Binance crypto exchange because its secondary payments provider has made some changes. The exchange stated that it was going to make the changes required for fixing this issue in the future in order to ensure that its clients in Brazil can continue to enjoy its services uninterrupted.
Binance asserted that the coming weeks would see a smooth transition and that all necessary steps were being taken for ensuring that the change does not affect its customers adversely. In addition, the exchange said that the Brazilian market was relevant for the company and that they would continue investing in the country to expand their services.
Binance’s secondary payments provider in Brazil is Capitual, which also services other crypto exchanges in the country. The bank clarified that the current problem had occurred because of the new requirements imposed by the Brazilian central bank. Those participating in its Pix payments platform have to comply with the said requirements.
Capitual stated that the bank had made upgrades to its technological platform in order to adjust to the changes and had also asked all its partners to make changes in accordance with the requirements. According to Capitual, other crypto exchanges like Kucoin and Huobi had adjusted their systems in accordance with the changes that had been made on their platform. Therefore, their customers were able to enjoy all real-based services without any problems.
This implies that the problem lies with Binance, as it has not made adjustments to its technological platform in order to meet the requirements of the Central Bank of Brazil. According to the bank, it is not possible to sidestep the requirements, as they have been deemed mandatory, not just for the company itself, but also its commercial partners.
Binance stated that it would soon announce its new payments partner in Brazil. The only hint it provided about the potential partner is that it is a local one with extensive experience. Meanwhile, the crypto exchange has recommended its users to use alternate methods for making deposits and withdrawals. Recently, the exchange had been forced to halt Bitcoin withdrawals on its platform as well, which was because its hardware wallets had failed due to wallet consolidation.
The world’s largest crypto exchange has been facing several problems of late and its trading volume has also suffered significant declines, as the downturn in the crypto market is taking its toll on companies operating in the space.