Binance accuses its Brazilian payment partner of violating “its values”
A Binance spokesperson confirmed today that the world’s largest crypto hub will be cutting ties with its existing payment partner in Brazil due to a conflict with “Binance values”.
The crypto giant is already replacing Capital with a soon-to-be-revealed local payment provider to provide a better solution for customers. The transition should be completed in the coming weeks. On Friday, Binance suspended deposits and withdrawals in Brazilian reals via the government payment system Pix.
“Binance can confirm that Capital is no longer providing payment services to its users due to actions taken by Capital that conflict with Binance’s values. Binance will announce a new Brazilian partner in the coming days. With this change, Binance will provide a better solution for customers in the process of acquiring local brokerage Sim;paul, authorized by the Central Bank and the Securities and Exchange Commission (CVM), “said a Binance representative in an e-mail addressed to FinanceFeeds .
Elaborating further on the matter, he added, “It is critical to note that Binance’s world-renowned investigations team regularly coordinates with local authorities. This includes working with the Federal Police to bring Glaidson Acácio dos Santos to justice in 2021 by freezing his accounts and identifying potentially illicit revenue streams across multiple platforms around the world.
It should be noted that the payment block coincided with the end of a deadline imposed by Brazil’s central bank on Pix’s suppliers 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. When it comes to direct cryptocurrency purchases, Pix and wire transfers can be accessed through another provider. For withdrawals, there is also a “sell a la carte” option for Visa, and users can contact Binance support or chat if they have any questions.
Binance also planned to buy banks and payment processors in Brazil to gain market access. He has already signed a memorandum of understanding to eventually acquire Brazilian securities brokerage firm, Sim;paul Investimentos. However, the takeover requires Binance to obtain approval from the Securities and Exchange Commission of Brazil (CVM) and the Central Bank of Brazil.