The news that caught Brazilian investors in cryptocurrencies last Friday (27) was the suspension of withdrawals and deposits in reais on the platform of Binancelargest cryptocurrency exchange (exchange) of the world. The shutdown came at a critical time for digital currencies, which have been posting heavy losses since last month.
The reason is not exactly linked to the drop in prices — as was the case with Celsius, the staking which is out of the air. The issue is more local: the central bank is eyeing Binance-related payment companies.
Who makes the bridge between the client and Binance is the Capitalwhich uses a payment institution (IP) regulated by the BC called Bank Access.
However, due to the broker’s inadequacy to the demands made by the Central Bank to Access Bank, the contract between them was broken and withdrawals and deposits in reais on the platform were suspended.
But as much as the suspension scares investors right now, the funds are safe and unchanged. Even Binance itself has provided a platform for investors to receive the money locked in their accounts.
How to get my money “locked in” on Binance
Deposits and withdrawals will be made through transactions in a system peer-to-peer (person-to-person, in translation, or P2P).
For customers who want to continue trading on the exchange, the direct purchase of cryptocurrencies will be done with Pix and bank transfers “available through an alternative provider,” according to Binance. For withdrawals in digital currencies, there is the option “sell to card”, available for Visa.
Here are some useful links for the user, provided by the brokerage itself:
- More information about deposits and withdrawals in real here;
- Binance Support for more questions about what happened on this page
- Broker’s official chat.
Binance, Capitual, Access Bank… Who Does What
To recap: Binance has no official headquarters in Brazil, despite having representatives in the country. In order to operate here, the broker uses the company Capitual, which in turn uses a payment institution (IP), regulated by the BC, to connect customers.
Recently, the Central Bank required Access Bank to create “individual accounts” for customers, linked to only one CPF per user. This method facilitates the identification of malicious transactions and is different from the system of “mother accounts”, with several registered CPFs.
According to Capitual, the deadline for individualizing accounts ended last Thursday (16th) and Binance’s problems have been occurring since Friday (17th), just after the deadline given by the Central Bank.
Other brokers have already done
The requirement is nothing extraordinary: it complies with the General Data Protection Law (LGPD) and anticipates the regulation of cryptocurrencies in Brazil — which prioritizes measures against money laundering.
In English, the practice is known as know your customer (KYC, or “know your customer”, in free translation)
Other exchanges that also partner with Capitual, such as Kucoin and Huobi, have gone through the same process. The user just needed to update their registration to be able to trade on the platform.
Even without the law, brokers follow the same path
Some Brazilian brokers, such as Mercado Bitcoin and Coinext, among others, already carried out this type of management of customer data, even though the regulation has not yet been approved.
In the words of sources heard by Seu Dinheiro, this is a way of providing transparency to business and security to investors.
In addition, this is a way of anticipating the regulation that is being processed in the Congresswhich is already close to being approved.
what the parties say
In a press release, Binance states that it is in the process of replacing its partnership with Capitual, but did not reveal the name of the next company. In addition, the exchange continues in the process of acquiring Sim;paul, announced in March of this year.
This was even Binance’s first move to anticipate local regulation and formally install its operations here.
Capitual, on the other hand, states that it understands that the requirements of regulatory bodies, such as the Central Bank, are mandatory for its operation and that of its commercial partners.
Read the press release from the two companies in full below.
How is the chess of brokers in this scenario
Anonymous sources consulted by the report understand that what happened should not stop Binance from entering the national market. The broker moves approx. $10 billion per day, according to Coin Market Cap, and has been investing in the country since late 2020.
But on the negative side of Binance’s balance is the fact that the exchange faces regulatory problems in other parts of the planet. In addition, there are occurrences of clients here in Brazil who had already complained about the broker’s lack of transparency.
This should further penalize Binance as local regulation advances. Even with the purchase of Sim;paul, the BC has other demands that may delay the start of the broker’s formal operations in Brazil, among them, the presentation of Binance’s international representatives.
With this, a new chapter opens in the disputes between cryptocurrency brokers in the Brazilian market.
Formally, Binance has several offices around the world and does not have a central headquarters.
In this way, more accurate information about the members that make up the exchange’s governing body and even the company’s presidency — headed, as far as is known, by Changpeng Zhao, known as CZ and current CEO of Binance — also cannot be externally audited, according to sources heard by the report.
On the other hand, Binance understands that, as it is the largest and one of the oldest cryptocurrency exchanges in the world, it ends up being treated as the scapegoat for the problems of the digital currency universe.
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Read the company’s full press releases:
Binance, the largest global infrastructure provider for blockchain ecosystem and cryptocurrencies, today announced that it will switch from its current payments partner in Brazil to offer a better solution for customers, while conducting the process of acquiring local brokerage Sim;paul, authorized company. by the Central Bank and the Securities and Exchange Commission (CVM), announced in March. Binance will replace Capitual with a local payment provider with extensive experience, to be announced soon.
The exchange highlights that it will promote a smooth transition in the coming weeks and that it is taking all necessary steps, including legal related to Capitual, to ensure that users are not adversely affected by the change.
For deposits and withdrawals, users can also transact via Binance’s P2P system (more information here). For direct purchase of cryptocurrencies, Binance has Pix and bank transfers available through an alternative provider. For withdrawals, there is a “sell to card” option available for Visa, a new zero-cost feature. If in doubt, users can access Binance support on this page or via official chat.
Binance also reinforces that Brazil is an extremely relevant market for the company and that it will continue to invest and expand services in the country.
Capitual informs that the services provided to the international exchanges with which it has a partnership are operating normally. In response to a determination by the Central Bank, Capitual worked for 45 days on adapting its technological platform to reinforce controls and greater security in operations involving cryptocurrencies. This adequacy came into effect on the last day 16/6.
The partner exchanges KuCoin and Huobi incorporated the adjustments made to the Capitual platform and the services provided to their users in transactions with reais happen regularly. In the case of Binance, Capitual awaits information on this suitability.
Capitual bases its activities on compliance with legislation and requests from regulatory bodies and is committed to measures to combat money laundering and the financing of illicit activities in the cryptocurrency market. In this way, it understands that the requirements of regulatory bodies, such as the Central Bank, are mandatory for its operation and that of its business partners.