Binance has resumed deposits, but withdrawals are suspended. Nevertheless, the exchange assured that all services will be activated “soon”.
Notably, Binance suspended withdrawals and deposits of Brazilian Reals on June 17th. At that time, the company had severed its two-year association with local payment gateway, Capitual. Until then, Capital was tasked with enabling deposits and withdrawals on Binance via Pix.
The exchange did not give any clear reason for terminating the relationship, but did state its intention to sue the company. Opposing this, Capital said it would also initiate a lawsuit against the exchange for regulatory non-compliance. According to the payment gateway, Binance was treated as a “single out user account” according to the rules established by the Central Bank of Brazil (BC).
Binance to resume trading after cutting off a participant
Now more information about the bitter relationship has come from local media reports. The publication Folha de S Paulo says that one of Capital’s founders helped a “Bitcoin pharaoh” with money laundering. The character in question is officially known as Gladson Acacio dos Santos. He is currently in custody for allegedly running crypto-related Ponzi schemes.
Meanwhile, the newspaper Valor Economico reported that legal action against Capital had already been implemented. The So Paulo Court of Justice (TJSP) has now deposited 451.6 million Brazilian reals, or $84.6 million, into the bank’s accounts. The court held that the funds in question are with Binance’s clients.
In place of Capital, Binance has partnered with payments firm LATAM Gateway. The latter bank accounts are hosted on a BS2 bank, which is BC-licensed to conduct transactions with the Pix network.
As for the severed partnership with Capital, Binance said the entity’s “actions conflict with its values.” It also guaranteed that it “takes all necessary and reasonable measures with respect to Capital to protect users and their resources and ensure that they are not adversely affected by the change.”
Brazil aggressive on crypto adoption
However, in the bigger picture, Brazil continues to introduce positives to the blockchain and cryptocurrency industry. In early June, one of its major football teams, So Paulo, enabled payment for its tickets with bitcoin (BTC), along with other digital assets. Just before this, the country launched a blockchain network to trace public spending.
Recently, a government official presented a bill that seeks to shut down cryptocurrencies as a means of payment in Brazil.
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