At the start of the week, Binance announced a suspension of deposits and withdrawals. However, it would affect users of the platform in Brazil.
As stated by Binance, the suspension is because of changes by its payment partner. Meanwhile, the company noted that it would take legal action.
However, the partner, Capitual Bank, noted that Binance refused to apply changes to its platform. This is part of the new KYC information needed by the country’s central bank.
Binance Suspends Withdrawals And Deposits
Binance has placed a halt on withdrawals and deposits in Brazil. This was due to recent changes asked by its payment partner, Capitual bank.
Meanwhile, the crypto firm is taking steps to prevent similar occurrences in the future. As stated in the company’s blog post:
“We will provide an easy transition for our users and platform. Also, we are taking steps and legal action to ensure it doesn’t affect our users.”
Furthermore, the crypto exchange noted that the Brazilian market is very important to the company. As a result, it would keep investing and expanding its services.
Capitual Bank Responds To The Recent Development
Capitual is the banking institution that helps crypto companies with payment services in Brazil. The bank said that the recent withdrawal suspension is due to new KYC regulations.
Recently, Brazil’s central bank asked participants using its Pix payments platform for more requirements. As a result, Capitual has updated its platform to the new changes.
Therefore, the bank has asked those enjoying its services to modify their platforms too. According to the company:
“Other partner exchanges such as Huobi and Kucoin have modified their system. Now, our platform can work seamlessly to provide their users with payment services.”
As stated by the bank, only two firms have altered their system. Therefore, Binance has not adopted its platform to the new requirements of the central bank.
Brazil’s central bank noted that no firm should sidestep these steps. As a result, they are mandatory for all institutions providing payment services and their partners.
However, it appears Binance is working towards a new payment partner. The crypto firm said it would announce the partner soon. Binance only stated that it is an experienced provider.
In the meantime, Binance has directed its customers to an alternative deposit and withdrawal method. However, the firm has paused Bitcoin withdrawals globally due to hardware wallet issues.