Binance Reenables Transactions on Brazilian Payment System Pix

Binance has already resumed deposits, but withdrawals remain suspended. Nevertheless, the exchange assured that all services will be active “shortly.”

Notably, Binance suspended withdrawals and deposits of Brazilian reals on June 17. At the time, the company had broken away from its two-year collaboration with Capitual, a local payment gateway. Until then, Capitual was tasked with enabling deposits and withdrawals on Binance via Pix.

The exchange gave no clear reasons why it had terminated the relationship but communicated its intentions to sue the company. Countering this, Capitual said it would also launch a lawsuit against the exchange for regulatory non-compliance. According to the payment gateway, Binance, in line with regulations installed by the Central Bank of Brazil (BC), was supposed to “single out user accounts.”

Binance Resuming Transactions After Cutting a Partner

More insight into the now-bitter relationship has come from local media reports. The publication Folha de S.Paulo says one of Capitual’s founders helped “Bitcoin Pharaoh” launder money. The character in question is officially known as Glaidson Acácio dos Santos. She is currently in custody for allegedly running crypto-related Ponzi schemes.

Meanwhile, the newspaper Valor Econômico reported that legal action had already been enforced on Capitual. The São Paulo Court of Justice (TJSP) has now frozen 451.6 million Brazilian Reals or $84.6 million in the bank’s accounts. The court noted that the funds in question are owned by clients of Binance.

In place of Capitual, Binance has partnered with the payments firm Latam Gateway. The latter’s bank accounts are hosted on the BS2 bank, which is BC-licensed to transact with the Pix network.

As for the severed partnership with Capitual, Binance said the entity’s “actions conflict with its values.” It also guaranteed it had taken “all necessary and appropriate measures in relation to Capitual to protect users and their resources and ensure that they are not adversely affected by the change.”

Brazil Aggressive on Crypto Adoption

In the bigger picture, however, Brazil continues to exude positivity for blockchain and the cryptocurrency industry. In early June, one of its prime soccer teams, São Paulo, enabled payments for its tickets with Bitcoin (BTC), among other digital assets. Just before that, the country launched a blockchain network for tracing public expenditures.

More recently, a government official presented a bill that seeks to officiate cryptocurrencies as a means of payment in Brazil.