Global crypto exchange Binance suspended deposits and withdrawals in Brazilian reals through the government's payment system Pix on Friday.
The company announced in a statement that it terminated a
partnership with the local payment gateway Capitual, which operated Binance’s
deposits and withdrawals via Pix for a year and eight months.
On its platform, Binance informed
users that deposits via Pix are experiencing instability due to a policy change
made by the Central Bank of Brazil (BC), without providing further details.
The service blockage coincides with the end of
a deadline imposed by the BC for Pix providers to implement new KYC (know your
customer) requirements.
“Binance will replace Capitual with a local
payments provider with extensive experience, which will be announced soon,” the
company stated, adding that it will take legal action against Capitual, without
providing further details.
Binance is in the process of acquiring local brokerage Sim; paul, which has
already been authorized by the Central Bank and the Securities and Exchange
Commission, the company added.
Binance informed its users that withdrawals
and deposits through Pix can take up to 72 hours to be cleared. The company
added that users can still make peer-to-peer deposits and withdrawals.
This week, KuCoin, which also works with
Capitual, announced a change in its KYC policies.
The company started redirecting its users in the South American country to
Capitual's website to complete their identity verification.
Source: coindesk.com