© Reuters Binance subjected to scrutiny in Brazil, with its executive summoned to testify before Congress
As recently reported, Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, requested the summoning of Guilherme Haddad, director of Binance Brazil, to attend the Brazilian Parliament in the context of an investigation by the Parliamentary Commission of Inquiry (CPI). on alleged pyramid schemes operating in the country. The June 21 request will be voted on by ICC members on June 27. According to a translation by Brazilian news outlet Portal do, if the vote is approved, Haddad will be summoned to attend the Brazilian Chamber of Deputies. The development comes amid a global regulatory crackdown on the largest cryptocurrency exchange. Binance has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom and Brazil, underlining the international attention on the company. In addition, the deputy said that Binance has been used by pyramid schemes in the country to facilitate asset transfers, reporting:
“…Therefore, it is crucial to understand Binance’s operations, its association with B Fintech, and its involvement with companies that are facing legal action for harming Brazilian consumers, as this strongly links Binance to the investigation into course”.
The authorities of the South American nation have specified that the intent to convene derives from the fact that the company is facing the above scrutiny from regulators around the world. Binance is also being investigated in Brazil by the Federal Prosecutor’s Office and the Federal Police. The exchange allegedly assisted clients in circumventing an order to stop investing in cryptocurrency derivatives. According to an earlier report by Portal do Bitcoin, the Securities and Exchange Commission of Brazil has already pressured Binance to stop offering Bitcoin futures products to Brazilian customers.At the time of posting, Binance did not respond to our request for comment.
Translation by Walter Rizzo
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