Chinese cryptocurrency broker closes operations in Brazil and announces deadline for withdrawals

The Chinese exchange Coinbene announced this Monday (18) that it will officially close all activities in Brazil, a country where it operated for four years with some difficulty. Customers will have until the end of November to make withdrawals.

In an official note , the Coinbene said he was suffering due to operational constraints r ecentes bans Chinese government to crypto market that prevented the continuity of his service in Brazil.

“Considering that the main technical services and product innovations come from the Chinese team, we may not be able to provide high quality services to Brazilian customers as we have always done”, explains the Brazilian exchange team, which concludes: “If we cannot provide services quality, we prefer to stop”.

With the end of operations in Brazil, the brokerage firm loses its local service team and no longer offers deposits and withdrawals in reais on the platform.

Brazilians who have an account at Coinbene must withdraw their assets in real by November 31, the date on which services will be officially interrupted. “After this date, any and all negotiations must be made directly with Coinbene Global”, informs the broker.

A Brazilian exchange official, who preferred not to have his name disclosed, confirmed the previous information to the Bitcoin Portal and warned that the exchange may not be struggling only in Brazil, as the operational problem is global.

"In fact, Coinbene will end its activities, the announcement of the global platform has not yet come out, but the branch in Brazil is already signaling its closure." He did not confirm the end of the global platform, but said he believed it would close soon "due to recent attacks by China's regulators that make the operation unfeasible".

Coinbene's troubled past in Brazil

Coinbene opened its branch in Brazil in 2018 and, unlike other international exchanges that also expanded their operations in the country, the Chinese brokerage faced some difficulty in consolidating its position in the Brazilian market.

At the end of last year, customers suspected that Coinbene had left the country when the platform stopped responding to Brazilian users.

At the time, the director of operations at the brokerage in Brazil, Sofia Fang, told the Bitcoin Portal that the platform is undergoing a restructuring phase and that is why it was not working.

She claimed, however, that the service continued as normal, although customers reported that their emails were not answered and that the phone number that the broker reported on Google, belonged to someone else.

In addition to operational problems, legal obstacles also marked Coinbene's journey in Brazil. In August 2020, the Brazilian Securities and Exchange Commission ( CVM ) prohibited the exchange from attracting clients in the country to invest in futures contracts. At the time, regulators claimed that the offer of this type of product corresponded to a derivative contract and that, as such, it needed express authorization from the CVM to be offered to Brazilians.

The post Chinese cryptocurrency brokerage ends operations in Brazil and announces deadline for withdrawals appeared first in Portal do Bitcoin .

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