Binance accuses its Brazilian payment partner of violating “its values”
A Binance spokesperson confirmed today that the world’s largest crypto hub will cut ties with its existing payments partner in Brazil due to conflict with “Binance’s values.”
The crypto giant is already in the process of replacing Capitual with a local payment provider that will be revealed soon to give a better solution for customers. The transition is expected to complete in the coming weeks. Binance suspended deposits and withdrawals in Brazilian reals through the government’s payment system Pix on Friday.
“Binance can confirm that Capitual no longer provides payment services to their users due to actions taken by Capitual that conflict with Binance’s values. Binance will announce a new Brazilian partner in the coming days. With the change, Binance will offer a better solution for clients while in the process of acquiring the local brokerage Sim;paul, authorized by the Central Bank and the Securities and Exchange Commission (CVM),” a Binance rep said in an email statement to FinanceFeeds .
Further elaborating on the issue, he added “It is critical to note that Binance’s world renowned investigations team coordinates with local authorities on a regular basis. This includes work with Federal Police to bring Glaidson Acácio dos Santos to justice in 2021 by freezing his accounts and identifying potentially illicit revenue streams on multiple platforms across the globe.”
Of note, the payments blockage coincided with the end of a deadline imposed by the Brazilain central bank for Pix providers to implement new “know your customer” requirements.
To ensure its users are not negatively impacted, Binance said they can make deposits and withdrawals using the platform’s P2P system. As for direct purchases of cryptocurrency, Pix and bank transfers are accessible through an alternate supplier. For withdrawals, there is also a “sell to card” option for Visa, and users can contact Binance support or chat if they have any questions.
Binance was also reportedly planning to buy banks and payments processors in Brazil as a way into the market. It has already signed a memorandum of understanding to potentially acquire Brazilian securities brokerage firm, Sim;paul Investimentos. However, the takeover requires Binance to get approval from both the Securities and Exchange Commission of Brazil (CVM) and the Central Bank of Brazil.