Justice determines block of R$ 450 million of cryptocurrency platform

The TJ-SP (São Paulo Court of Justice) ordered, on June 30, the blocking of approximately BRL 451.6 million from the cryptocurrency trading platform Capitual Instituto de Pagamento.

According to people familiar with the matter who spoke to the Sheet on condition of anonymity, Capitual has been operating since mid-2020 in the operation of transactions for the purchase and sale of crypto assets from clients of the global brokerage Binance, and in the conversion of crypto assets into reais. The broker is not headquartered in Brazil, and was established under the laws of Lithuania.

Binance reportedly refused to follow the BC (Central Bank) rule, valid since June 16, which requires companies to individually identify all customers operating through cryptocurrency trading platforms. The BC’s objective is to prevent illegal operations such as money laundering through the crypto market.

Also according to the people who follow the subject, with Capitual’s refusal to trade Binance’s customers’ values ​​without the identification determined by the BC, the brokerage company filed a request to block the values ​​in court, claiming that it was prevented from accessing them, and that resources are at risk of being diverted. Binance also accused Capitual of not respecting the 90-day notice for interruption of services provided.

In a statement, Capitual informs that it does not comment on the decision of the TJ-SP, due to the fact that the process is carried out in secrecy of Justice. The company clarifies that it has adapted its technological platform to individualize the process of verifying the identity of users in transactions in reais, in compliance with the determination of the BC. “The objective is to strengthen controls and have more security in operations involving cryptocurrencies,” Capitual said in a note.

Also according to the platform, this adequacy was informed to Binance, as well as to the other partner exchanges, in early May. “The partner exchanges KuCoin and Huobi adapted their systems to the changes that occurred in the Capitual platform and the services provided to their users in transactions with reais happen regularly. In the case of Binance, there was no such adaptation”, said Capitual.

“All companies operating in Brazil need to adapt to the rules of the Central Bank”, says Henrique Ávila, a partner at Sergio Bermudes Advogados, which works in defense of Capitual.

Binance Says It’s “Fully Committed to Compliance”

Binance, also in a statement, informed that Capitual is no longer its payment provider, and that it signed a contract with Latam Gateway on June 24 to resume customer withdrawals and deposits through the platform.

“Binance also emphasizes that it has taken all necessary and reasonable steps towards Capitual to protect users and their resources and ensure they are not adversely affected by the change.”

Also according to Binance, the integration process with the new payment partner is ongoing and will be completed soon, when transactions (deposits and withdrawals) will be fully normalized.

The exchange also reported that it continues to offer options to clients who wish to invest in crypto assets. “For deposits and withdrawals, users can also transact via Binance’s P2P system. For direct purchase of cryptocurrencies, Binance has Pix and bank transfers available through an alternative provider. For withdrawals, there is a “sell to card” option. available for Visa”, informed the brokerage.

“Binance is fully committed to compliance and believes that regulation is the only way for the crypto industry to grow and reach the general public. Brazil is very relevant to Binance and we have been working in direct and constant contact with local authorities to contribute to the expansion of the segment. The announcement, in March of this year, of the acquisition process of Sim;paul, a Brazilian broker authorized by the Central Bank and the Securities and Exchange Commission (CVM), reinforces this”, said Binance in a note. sent to Sheetin response to a question about the refusal to follow BC’s determination on the identification of customers.

Report published by Sheet shows that the bill that intends to impose rules on the crypto-assets market is in danger of being hollowed out, and that Binance would have asked for changes, considering the proposal too broad.

In a scenario of greater risk aversion by investors, in the context of high interest rates in developed markets, cryptocurrencies have registered a strong devaluation in the year. Bitcoin is down about 60% in 2022, through July 4, according to Bloomberg data.