Amid the increasing troubles for Binance, now comes Brazil which has taken a step against the exchange. A Brazilian official has requested the authorities to summon an executive of the Brazilian branch of Binance to answer some speculations that the authorities have.
According to local media reports, Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has requested the summoning of Guilherme Haddad, the director of Binance Brazil. The summon will force the individual to appear before the Brazilian parliament as part of an ongoing Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes in the country.
Reportedly, the request was brought to attention on Wednesday and will be voted on by members of the CPI on June 27. Sources reveal that if the vote is approved, Haddad will be summoned to appear before the Brazilian Chamber of Deputies. Furthermore, Gaspar claimed that Binance was utilized by pyramid schemes in the country to facilitate asset transfers. He said:
Hence, it is vital to understand Binance’s operations, its association with B Fintech, and its involvement with companies facing legal action for harming Brazilian consumers, as this strongly links Binance to the ongoing investigation.
The authorities in Brazil which is a South American nation explained that the intent for summons is due to the fact the company is facing the scrutiny from regulators worldwide. Additionally, in Brazil, Binance is being investigated by the Federal Prosecutor’s Office and Federal Police.
As per the authorities, the cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments. According to previous media reports, the Securities and Exchange Commission (SEC) of Brazil has already been pressing Binance to stop offering Bitcoin futures products to Brazilian customers. As of writing, Binance has not openly commented on this rising case.
This development comes amid a global regulatory crackdown on the largest cryptocurrency exchange. Binance has been facing regulatory crackdown by authorities in various locations recently. The regions which are investigating Binance or have launched a lawsuit include the United States, France, the Netherlands, the United Kingdom and Brazil, underscoring international attention on the company.
The US SEC has filed 13 charges against the exchanges for commingling users’ funds and operating without a license. Simultaneously, the French authorities revealed that the exchange has been under investigation since February 2022 for operating without a license. All this shows the increasing pressure on the company which has resulted in losses and significant outflows.