Binance crypto exchange has decided to suspend the withdrawals and deposits in the Brazilian currency of Reals in the southern American nation. At this moment, Binance has also suspended its partnership with the Brazilian government's payment system called Pix. In another deal suspension, Binance has terminated its contract with the local payment gateway called Capitual, for a year and eight months. This platform operated Binance's deposits and withdrawals via Pix. In a blog post, Binance has cited instability in facilitating transactions due to the financial policies released by the Central Bank of Brazil (BC).
“Binance today announces that it will switch from its current payments partner in Brazil to provide a better solution for customers while driving the acquisition process,” the company said in its post.
As of now, Binance has not elaborated on exactly what policies are affecting its working procedures.
Binance's service suspension also comes in the backdrop of Pix providers not having implemented new Know Your Customer (KYC) requirements that was directed by the Brazilian financial authorities.
The crypto exchange is still in the process of deciding which other local payment gateway will replace Capitual in Brazil.
“Binance will replace Capitual with a local payment provider with extensive experience, to be announced soon,” the blog post added.
The company, led by crypto billionaire Chengpeng Zhao, has promised a smooth operational transition for its Brazilian users.
In April, the Senate of Brazil passed the nation's first bill overseeing the cryptocurrency sector. This bill, that aims at bringing the digital assets sector under Brazilian rules, is now two steps away from becoming a law.
As part of its crypto laws, Brazil is laying major focus on establishing relevant fines and punishments for those who misuse cryptocurrencies for unlawful activities like money laundering, fraud, and other white-collar crimes.
In May, Nubank, Brazil's largest digital bank by market value, began offering Bitcoin and Ether to be bought or sold on its platform.
As per blockchain research firm Triple-A, around 10 million Brazilians held cryptocurrencies in 2021.