Binance Suspends Direct Deposits and Withdrawals in Brazil – Binance stated this week that direct withdrawals and deposits in Brazil have been halted. The exchange issued a statement explaining that this was the result of a change in the country’s payments partner and that it would pursue legal action. Binance, on the other hand, did not adjust to supply the updated KYC information requested by Brazil’s central bank, according to the partner.
Due to a change in its secondary payments provider, Binance has halted real-based direct deposits and withdrawals in Brazil. The exchange stated that it will make the required improvements to rectify the problem in the future so that it could continue to provide these services to its Brazilian customers.
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Binance explained the problem in a blog post, stating:
“In the coming weeks, Binance will promote a smooth transition and will take all required procedures, including legal related to Capitual, to guarantee that users are not adversely affected by the move.”
In addition, the exchange noted that Brazil was “an extremely crucial market for the company,” and that it would continue to invest and grow services there.
Capitual, the bank that offers payments services to Binance and other exchanges in the country, explained that the situation stemmed from new requirements imposed by the Central Bank of Brazil on users of their Pix payment platform. According to Capitual’s claims, the bank modified its technology platform to adapt to these changes and asked its partners to do the same.
According to the company:
“The partner exchanges Kucoin and Huobi have adjusted their systems to the modifications on the Capitual platform, and the services provided to their users in reais transactions happen on a regular basis.”
This means that only Binance, according to them, has failed to adjust its technology platform to meet the new standards imposed by Brazil’s central bank. The bank ended by declaring that these criteria were “necessary for its business and that of its commercial partners,” and that they could not be avoided.
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Binance’s new payment partner will be revealed soon, and the company has only described it as a “local payment provider with great experience.” Binance is urging its users to alternative withdrawal and deposit methods in the meantime. Due to hardware wallet problems during wallet consolidation, the exchange had to temporarily halt bitcoin (BTC) withdrawals around the world.
