Binance has announced that it has suspended deposits and withdrawals in Brazil. The exchange released the statement when it announced that this resulted from the change of payment partner in the country and that it would be exploring legal steps. However, the partner explained that Binance did not adapt to give new know-your-customer (KYC) information as required by the Central Bank of Brazil.
Binance Halts Withdrawal/ Deposits, Says Working on Restoring Them
Binance has announced direct deposits and withdrawals in Brazil this week following a change in its payment provider. The exchange explained that it was crucial to fix this problem in the future to ensure that it keeps offering its services to clients in the Latam country.
“[Binance] will promote a smooth transition in the coming weeks and that it is taking all necessary steps, including legal related to Capitual, to ensure that users are not adversely affected by the change,” read a statement from the company.
The giant crypto exchange also explained that Brazil was a highly relevant market for the firm, and it would continue to invest and expand there.
Capitual, the bank that offers payment services for Binance and other exchanges confirmed that the issue had to do with new requirements by the Central Bank of Brazil about participants of its Pix payment platform. The bank indicated that it updated its platform to adapt to the changes and asked its partners to also adapt to the new changes.
“The partner exchanges Kucoin and Huobi have adapted their systems to the changes that have taken place on the Capitual platform and the services provided to their users in transactions with reais happen regularly,” read a part of the statement from the bank.
According to Capitual, only Binance has failed to adapt to the new platform for compliance with the central bank’s requirements. The bank concluded that the new requirements could not be sidestepped because they are mandatory for all.
The Binance new partner will be unveiled soon, and the company indicated that it is only a local partner with extensive experience. In the meantime, Binance has asked its clients to use alternative methods to make deposits and withdrawals. Recently, Binance paused Bitcoin withdrawals across the globe because of hardware wallet failures.