Binance, one of the major crypto exchanges, has decided to stop deposits and withdrawals in the Brazilian currency Rial. Along with this, the exchange has also terminated its tie-up with the Brazilian government’s payment system Pix and local payment gateway Capitual.
Binance has a blog post I said that the financial policies of the Central Bank of Brazil are causing problems in transactions. The exchange has said that it will provide a better solution for customers than its existing payments partner in Brazil. However, it did not specify which policies were affecting the exchange’s transactions. Brazil’s financial authorities had changed the Know Your Customer (KYC) requirements, which Pix has not complied with. Binance has not decided which other local payment gateway will be used in place of Capitual in Brazil.
However, the exchange has promised no trouble to Brazilian users. Recently the Senate of Brazil became the first to monitor the crypto segment. bill had passed. The aim of this bill is to bring this segment under the laws of the country. It has been sent to the Chamber of Deputies for approval. After this it will become law with the signature of President Jair Bolsonaro. The regulatory framework for cryptocurrencies in Brazil may come into force by the end of this year.
Senate Chief Rodrigo Pacheco headed the committee that approved the bill. Pacheco said, “I congratulate Senator Irajá for his great contribution to bringing this important bill.” Under this law, there will be provision for punishment and fine for those who misuse cryptocurrencies. Violators of this law can be imprisoned for four to eight years. In Brazil last year around 10 million people were estimated to have cryptocurrencies. A new regulatory body may be created in Brazil to oversee the crypto segment. This responsibility can also be given to the Securities and Exchange Commission or the Central Bank of Brazil.