06-20-2022 icon

Binance Halts Payments in Brazil Due to Central Bank Regulatory Review

By Lucy Adegbe
Zhao

Worldwide recognized exchange protocol, Binance halted incoming and outgoing payment transactions in Brazil performed through the national monetary payment network Pix on June 17.

The company made this public in an article, stating that it is no longer in coalition with the state’s entry Capitual, which regulated the company’s platform payment transactions through Pix for over 20 months. 

Binance further highlighted to its customers that payments made through Pix are undergoing a certain flux as a result of the Brazil central monetary system adjustment.  

The service stoppage clashed with the wrap-up of a stipulated deadline set by Brazil’s monetary system for Pix providers to enforce a revised customers identity regulation also called the “Know Your Customer” (KYC).

Without further details, the company explained that “Binance will replace Capitual with a local payment provider with extensive experience, which will be announced soon.” The statement also revealed that Binance would be filing a lawsuit against Capitual. 

Binance also explained that it is taking action to obtain security brokerage, Sim which has been approved by the Brazil central monetary body and the securities and exchange commission. 

KuCoin, which is also in alliance with Capitual, published a review in its “know your customer” agreement. The company commenced redirection of its South American resident customers to Capital’s website for the completion of their individuality verification.