SP Justice blocks BRL 450 million in cryptocurrency transactions from BinanceEntertainment 

SP Justice blocks BRL 450 million in cryptocurrency transactions from Binance

The Brazilian company that processes withdrawals and deposits from brokerage clients claims that there have been no adjustments to the new rules in the crypto market

Pierre Borthiry/UnsplashPhysical examples of cryptocurrencies
The new rules for cryptocurrency transactions came into effect on June 16

The Second Chamber of Business Law of the Court of Justice of São Paulo (TJ-SP) determined the blocking of R$ 451.6 million from the accounts of Capital, a company that brokered transactions in Binancethe biggest middleman cryptocurrencies in the world, with clients and financial institutions in Brazil. Values ​​were created by buying and selling assets on the foreign platform. The Brazilian company stopped Binance’s payment processing on June 16, claiming that Central Bank measures regulating the cryptocurrency market, such as requiring the company to obtain user identification (KYC) data, were not being respected. BC continued to require that each Binance customer’s accounts be individualized to prevent financial fraud such as money laundering and the financing of stocks and terrorist groups, but the Lithuania-based company claimed a violation of user privacy and refused to comply with the rules.

When the service was discontinued, customers’ money continued to be saved but could not be withdrawn. Binance went to court to simultaneously restore the operation of the system and withdraw money from Capital, with the termination of the contract. According to an official note from Capital, two other brokers where he works, KuCoin and Huobi, have made the necessary adjustments and their negotiations are proceeding normally. The brokerage appealed to the courts and on June 22 obtained a decision from the 18th Civil Court of Sao Paulo so that the service could continue to be offered. However, this decision was suspended days later by Judge Caio Marcelo Mendes de Oliveira, from the 2nd Chamber of Business Law. On June 30, Judge Paulo Ayrosa, of the 31st Chamber of Private Law, ordered the blocking of the accounts. THE New pan attempted to contact Binance, the law firm representing the company in the lawsuit, and Capital, but had not heard back by the time of this writing. If deployments are sent, the text will be updated.

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