Binance has stopped Brazilian real-based direct withdrawals and deposits this week due to a change at its secondary payment provider. However, the exchange stated that it would make the necessary changes in order to address this issue in the future and continue offering these services to Brazilian customers.
The exchange explained the situation in a blog post, adding that it will ensure a smooth transition over the next weeks. It also stated that all Capitual-related steps, including any legal activity, are being taken to ensure users are not negatively affected by the changes. Binance also stated that Brazil was an “extremely relevant market for the company” and that it would continue investing and expanding services in the country.
Capitual, the bank providing payments services for Binance and other exchanges in Brazil, stated that this was due to the new requirements the Central Bank of Brazil has placed on participants of its Pix payment platform. Capitual claims that the bank has updated its technological platform in order to adapt to these changes, and it has asked its partners to do the same.
Kucoin, Huobi and other partner exchanges have adapted their systems to accommodate the Capitual platform changes and to provide services to their users for transactions with reais.
According to them, Binance is the only one that has not adapted its technology platform to meet the new requirements of the central bank. These requirements were “mandatory” for the bank’s operation as well as that of its commercial partners. The bank concluded its statement by saying that they could not be ignored.
Binance will soon announce its new payments partner. The company simply referred to it as a “local payment provider with extensive experience.” Binance is now directing users to other withdrawal and deposit options. Due to wallet consolidation failures, Binance recently suspended Bitcoin (BTC) withdrawals worldwide.