Capitual says that Binance did not provide a return on the company’s suitability for the determination of the Central Bank

The exchange Binance, issued yesterday afternoon, even released by Declaring Bitcoin, an official note, where, without mentioning exactly what the problem is, the following statement:

“São Paulo, June 17, 2022 — Binance, the largest global infrastructure provider for the blockchain and cryptocurrency ecosystem, today announces that it will switch from its current payments partner in Brazil to provide a better solution for customers, while driving the process of acquisition of the local brokerage company Sim;paul, authorized by the Central Bank and the Securities and Exchange Commission (CVM). 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.”

This, after previously attributing the stoppage to Bacen systems, which was rejected by the institution, which states in a note released through an article by Thaís Barcellos, in Broadcast do Estadão:

Brasília, 06/17/2022 – The Central Bank clarified, in response to questions from the report, that the global cryptocurrency exchange Binance is not an authorized institution and does not participate in any system operated by the BC. The financial system regulator also stated that its systems are operating normally.

Conclusions:

  1. Bacen has no direct relationship with Binance;
  2. Binance hints that the problem is the payments partner capital, and also states that he is changing partners, and even taking legal action related to the partner.

It is worth remembering here that Binance’s partner bank is also a partner of the Kucoin and Huobi exchanges.

We tried to find out if the Kucoin broker had the same problem and identified the following guidelines:

  • “Start the new ‘Capital’ additional check for the payment method. This is a requirement of the bank and Capitual, not KuCoin. You must fill in your email, phone number and full name”.
  • “Next, you will be redirected to the Capitual page to fill in the other necessary information, including date of birth, CPF, mother’s name, full address, ID photo, selfie, etc.”

In short, the broker Kucoin proceeded with the requests of Banco Capitual.

This morning, the official note from the partner was issued. capital, which had not yet manifested itself, and, in my view, was the most enlightening so far.

“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 has worked in the last 45 days on an adaptation of its technological platform to strengthen controls and greater security in operations involving cryptocurrencies. This adaptation came into effect on the last day 16/6.

The partner exchanges KuCoin and Huobi have adapted their systems to the changes that have taken place on 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 states that its performance is in 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 commercial partners.”

From Capitual’s statement, it is clear that the other exchanges all met the request, while Binance remains on hold, and apparently, precisely because it has not yet met the legal requirements of operation in Brazil.

So, Binance? Again, the questions remain without direct answers about how we are. I’ve always been expressing myself in the sense that apparently we don’t see a move by the company to regularize itself in Brazil. Despite this, we always have the same statement from the company:

“Binance also reinforces that Brazil is an extremely relevant market for the company and will continue to invest and expand services in the country”.

At no time do we see practical measures of adequacy that assure us that the brokerage firm will be regularized in the country, which keeps the user always in a climate of insecurity regarding the future of the company in Brazil.

about the author

Text written by Ana Paula Rabello and originally published on the blog Declarando Bitcoin. Rabello is an Accountant, Judicial Expert and Income Tax Specialist.

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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