In recent weeks, the cryptocurrency exchange Binance has faced mounting regulatory scrutiny, attracting unwelcome international attention. The director of Binance Brazil, Guilherme Haddad, is now caught in the crosshairs, having been summoned to testify before Brazil’s parliament. Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, initiated the summons as part of an ongoing investigation by the Parliamentary Commission of Inquiry (CPI) into pyramid schemes in the country.
The call for Haddad’s testimony comes amidst Binance’s struggles with regulators in several markets, including the US, UK, France, and the Netherlands. While the company has made efforts to address these concerns – removing controversial investment products and bolstering its compliance team – it has not escaped the watchful eye of Brazilian authorities.
Accusations have emerged that the cryptocurrency exchange was used by pyramid schemes in Brazil to enable asset transfers. Gaspar emphasizes the importance of understanding Binance’s operations, its partnership with B Fintech, and its potential involvement with companies facing legal action. He argues that these factors tie Binance closely to the ongoing investigation.
The Brazilian Federal Police and the Federal Prosecutor’s office have both been keeping tabs on Binance’s activities, suspecting the company of helping Brazilian clients evade a stop order on investing in crypto derivatives. Given Binance’s previous issues with offering unlicensed products, it is not surprising that the platform has come under suspicion.
The Brazilian Securities and Exchange Commission has further put pressure on Binance, urging the company to halt its Bitcoin futures products offering to local investors. As of yet, Binance has not responded to the summons or provided any comments regarding its situation in Brazil.
If the request for Haddad’s testimony does not win approval in the vote scheduled for June 27th, the Binance executive may not be required to testify. Haddad, who has served as the CEO of Binance Brazil since late 2022, is also related to Brazil’s acting Minister of Finance, Fernando Haddad, as his uncle. However, this connection is not expected to impact the ongoing investigation, according to Honorato, the investigator.
With this latest summons, the scrutiny surrounding Binance continues to intensify, raising questions about the company’s activities and operations. As the regulatory environment tightens globally, the cryptocurrency world will be watching closely to see how Binance and other exchanges navigate these challenges and adapt their practices.
Source: Cryptonews
