This week the crypto enterprise Binance issued a statement saying it had suspended both direct withdrawals and deposits in Brazil. A change in the partner for payment in Brazil is cited as the reason behind Binance’s recent decision. The digital asset platform also stated that it will take legal action against the partner.
In the defense of Binance’s Brazilian partner, Binance has failed to comply with Brazil’s central bank requirement. Like all financial institutes and companies, Binance had to comply with providing new KYC (Know Your Customer) information. The crypto firm failed to adopt this rule.
Binance Stops Deposits and Withdrawals
Binance’s decision to stop withdrawals and deposits (in real time) this week in Brazil stems from a change in the Brazilian payments partner. But Binance has promised its customers that this is only temporary.
In a blog, Binance explained the situation. The digital asset company assured its customers of fixing the current problem. They are taking legal action against their partner, Capitual. Binance also promised a smooth transition over the coming weeks. They will ensure that their customers are not adversely impacted due to this incident.
Binance Did Not Abide By the Requirement
Capitual, Binance’s Brazilian partner responded to Binance’s decision. The payment provider bank explained that Binance did not provide new KYC information, as mandated by the Brazilian Central Bank.
The Brazilian central bank imposed new requirements on the companies listed in the Pix Payments platform. According to Capitual, companies like Huobi and Kucoin have adapted to the changes. Binance chose not to do so.