Binance suspends Withdrawals in Brazil after missing a KYC deadline

Key Takeaways

  • After the Central Bank obliged brokers to update their customers’ KYC in order to offer payment services in BRL, the exchange had to cease withdrawals and deposits in BRL.
  • Binance was late in complying with this deadline, which was set on Thursday.
  • In a statement, the business said it had ended its cooperation with Capitual, a local payment gateway that had been handling Binance’s payments and withdrawals via Pix for the previous year and eight months.

Following the New Central Policy, the popular cryptocurrency exchange Binance has stopped withdrawals and deposits in Brazil via the government’s payment system Pix.

The company issued a statement saying that it had severed ties with Capitual. Capitual has been at the forefront of accessing Binance transactions via Pix for nearly two years.

“Binance will replace Capitual with a local payments provider with extensive experience, which will be announced soon,” 

The exchange made a statement that affected the clients. They clarified that Pix transactions are suffering due to policy shifts. They blame the Brazilian Central Bank for the policy change that has rendered their procedures impossible. Binance, on the other hand, did not provide any details about the policy changes.

Binance is already on its way to obtaining Sim;paul, a native brokerage that has already received approval from the Central Bank and the Securities and Exchange Commission.

It is important to keep in mind that the decision to discontinue services corresponded with the expiration of the Central Bank of Brazil’s time limit for Pix providers to adopt new KYC requirements.

The exchange platform informed its users that withdrawals and deposits made through Pix could take up to 72 hours to clear. Customers can still make transactions with one another, according to the entity. They do, however, limit such transactions in the form of peer-to-peer money transfers.

As they try to find another partner, the exchange may lose some clients in Brazil as a result of the move.

Binance had previously halted BTC withdrawals due to stuck transactions. The trade halt occurred at a time when crypto markets were undergoing a serious downtrend. The pause was supposed to last less than 30 minutes at first. It did, however, take longer.

The Secure Asset Fund for Users insurance fund was the reason for the halt (SAFU.) SAFU was created four years ago for the company’s users. Binance coin, Binance USD, and bitcoin comprise the fund.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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