Binance Resuming Local Currency Deposits With Pix In Brazil

Binance Resuming Local Currency Deposits with Pix in Brazil

  • Binance discontinued service on June 17, stating that withdrawals would soon be restarted.
  • Binance suspended the deposits and withdrawals through Pix after its breakup with regional payment processor Capitual.
  • In place of Capitual, Binance is now working with the Brazilian payment system Latam Gateway, a bank authorized by the Central Bank of Brazil (BC).

The popular crypto exchange Binance has resumed deposits in Brazilian reals through the government’s payment system, Pix. While withdrawals of Brazilian reals via Pix are still suspended, they should resume shortly, according to a statement from Binance. This news will come as a relief to many cryptocurrency traders in Brazil who have been unable to access their funds for some time.

In a statement, Binance said that it had terminated its partnership with Capitual, a local payment gateway that had operated Binance’s deposits and withdrawals through Pix since 2020. Replacing Capitual, Binance is now operating with Latam Gateway, a Brazilian payments platform that uses BS2, a bank licensed by the Central Bank of Brazil (BC), to access the Pix network.

Binance’s decision to sever ties with Capitual was met with mixed reactions from the crypto community. Some users applauded Binance for taking a stand against a company that they felt had been flouting regulations, while others criticized the exchange for what they saw as an overreaction.

Binance’s decision to sever ties with Capitual could have serious implications for the cryptocurrency exchange. According to Brazilian newspaper Folha de S.Paulo, a company that had one of Capitual’s founders as a partner allegedly helped launder money for Glaidson Acácio dos Santos, known in Brazil as the “Bitcoin Pharaoh,” who is under arrest for allegedly leading a criminal organization responsible for promoting Ponzi schemes involving cryptocurrencies.

If it is proven that Capitual was involved in money laundering, Binance could be held liable for any damages incurred by victims of the Ponzi scheme. The São Paulo Court of Justice (TJSP) has already frozen 451.6 million Brazilian reais ($84.6 million) from Capitual’s accounts, which belong to Binance clients.

This could potentially leave many innocent investors out of pocket if they are unable to recoup their losses from Capitual.

Capitual has announced plans to sue Binance, while Binance has threatened legal action against Capitual in turn. It remains to be seen how this situation will play out, but one thing is certain: the once-strong partnership between these two companies is now definitively over.

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Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

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