Huobi Global has announced a partnership with Fintech Capitual to provide “account individualization” in Brazil.
Huobi is a prominent crypto exchange operating in 160 different countries reporting tens of millions of users. Capitual is a Brazilian payments gateway and “hybrid digital bank” that takes a compliance first approach. Huobi states that the partnership aims to upgrade its security measures and provide more secure and compliant fiat-to-crypto gateway services for users in Brazil.
The announcement arrives after the Brazilian Central Bank’s new regulation in May, requiring local banks and payment intermediaries to update Know Your Customer (KYC) processes to improve platform security and prevent money laundering. Users must now have an individual account confirmed with local banks and payment intermediaries to transact in Brazilian Real.
Lily Zhang, CFO of Huobi Group, commented:
“This KYC policy upgrade is part of our ongoing efforts to manage risks and security incidents. Compliance and users’ asset security have always been our top priorities, which is the reason we have maintained a track record of zero security incident in the nearly 9 years since our inception. We are determined to work closely with Capitual to provide more secure, professional and compliant services to our users in Brazil.”
Gustavo Rezende, COO of Capitual, said that his company has developed a tech platform capable of handling large volumes of transactions, quickly and securely:
“In addition, we are committed to compliance with legislation. In this way, we offer an environment of security and tranquillity for our business partners and their users to carry out their operations, in accordance with the requirements of the Brazilian regulatory authorities.”
According to the Brazilian central bank, the country’s crypto market was worth around US$6 billion in 2021 – up 81.8% over the previous year.
Capitual has been supporting crypto since 2018, reporting 2.5 million customers who transacted over 40 billion across more than 15 million transactions in Brazil last year. Capitual also works with KuCoin and says it is waiting on approval for Binance.
Since 2021, Huobi Global has been partnering with Capitual to offer fiat-to-crypto gateway services to its users in Brazil.