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Binance resumes transactions in Brazil after 2 weeks suspension

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TL;DR Breakdown
  • Binance has resumed local currency deposits for Brazilian customers using the payment system Pix.
  • The move comes just a few weeks after the exchange stopped accepting local currency payments in Brazil due to a fallout with its payment partner.

Binance, one of the world’s largest cryptocurrency exchanges, resumed deposits in Brazilian reals through the government’s payment system Pix. This was possible after Binance partnered with Latam Gateway, a processing payment company. As a result, they resumed deposits in Brazilian reals through the government’s payment system Pix on Tuesday, just two weeks after direct withdrawal and deposits were suspended in the country.

The crypto exchange had suspended direct withdrawal and deposits in Brazil after it changed its payment partner in the country and took legal steps against it.

According to a press release issued by Binance, the company resumed withdrawals and deposits through Pix because it has “successfully acquired a new partner”. Now that this issue has been resolved, the exchange platform will resume operations in Brazil as normal. They plan to begin paying out customers who have been affected by this situation as soon as possible.

Binance stops real related movements

Binance has been operating using the Pix network, a local payment network in Brazil. In addition, the company has been using the local gateway Capitual to operate its deposits and withdrawals through Pix. However, the exchange platform and Capital.com severed their relationship due to a dispute between the companies.

Binance announced that it would no longer use Capitual as a payment provider.

In a blog post explaining the situation, Binance announced that it had parted ways with Capitual and would be taking legal action against the company. In response, Capitual stated that it would sue Binance because it had failed to comply with BC regulations requiring exchanges to single out user accounts.

Binance’s new payments partner

To continue offering deposits and withdrawals in Brazil, Binance is now using Latam Gateway, which uses bank accounts hosted by BS2, a bank licensed by the Central Bank of Brazil (BC), to access the Pix network.

This meant that all of our users’ funds were temporarily unavailable while Binance transitioned from one system to another.

Pix is an electronic money transfer system regulated by the BC since 2001, which allows users without bank accounts to send money to each other via prepaid cards in Brazil. Going forward, Binance does not expect further delays in processing payments. The exchange was sorry for any inconvenience this may have caused people. They noted that their team is working hard to get things back on track!

Pharaoh of Bitcoins

The Brazilian newspaper Folha de S.Paulo reports that a company that had one of Capitual’s founders as a partner helped launder money for Glaidson Acácio dos Santos, known in Brazil as the “Bitcoin Pharaoh.” He is under arrest for allegedly leading a criminal organization responsible for promoting Ponzi schemes involving cryptocurrencies.

Glaidson has been in custody since August 2021 for crimes against the national financial system, criminal organizations, and money laundering. The Federal Police (PF) has identified a company that allegedly served as a middleman for the sale of cryptocurrencies owned by Glaidson’s criminal organization.

According to the investigation, Malta Intermediação de Negócios e Consultoria Ltda. would be the centerpiece in the crime ring. The company is identified as responsible for intermediating the sale of cryptocurrencies owned by Glaidson’s criminal organization.

Binance is working to improve its services for Brazilian users. Thus the company ended its contract with Capitual due to actions conflicting with Binance’s values. The exchange said it closed the contract with the local partner since they are committed to their values ​​and providing Brazilian users the best services.

With the new partner, Binance will offer a better solution for customers. The exchange said they are committed to its users and will do everything in its power to ensure that they are protected. The exchange recently assured its users that it had taken all necessary and appropriate measures with Capitual, including ensuring that they would not be adversely affected by the change of payment provider.

Nellius Irene

Nellius Irene

Nellius Irene is a cryptocurrency investor and journalist who has been in the nascent space since 2018. She has researched and written on several crypto-related topics including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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