Binance Faces Further Scrutiny as Brazilian Authorities Investigate Company’s Operations

Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has initiated a request to summon Guilherme Haddad, the director of Binance Brazil, to testify before the Brazilian parliament. The summoning is part of an ongoing Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes within the country. The request is scheduled to be voted upon by CPI members on June 27.

According to a translation from the Brazilian news outlet Portal do Bitcoin, Haddad may be required to appear before the Brazilian Chamber of Deputies if the vote is approved. This development adds to the mounting regulatory pressure faced by the world’s largest cryptocurrency exchange, Binance. Authorities from several countries, including the United States, France, the Netherlands, the United Kingdom, and now Brazil, have intensified their scrutiny of the exchange, signaling international attention on the company.

Deputy Alfredo Gaspar alleges that Binance was utilized by pyramid schemes operating in Brazil as a means to facilitate asset transfers. In his statement, he emphasized the importance of understanding Binance’s operations, its association with B Fintech, and its involvement with companies facing legal action for harming Brazilian consumers. Gaspar believes that these factors strongly connect Binance to the ongoing investigation.

Authorities in Brazil explained that the intent behind summoning Binance’s director is driven by the company’s ongoing regulatory scrutiny both domestically and worldwide. The Federal Prosecutor’s Office and Federal Police of Brazil are currently investigating Binance. The cryptocurrency exchange is alleged to have assisted clients in evading a stop order on cryptocurrency derivatives investments.

A previous report from Portal do Bitcoin stated that the Securities and Exchange Commission of Brazil had been pressuring Binance to discontinue offering Bitcoin futures products to Brazilian customers.

Binance Facing Issues From All Sides

As Binance faces growing regulatory challenges in multiple jurisdictions, the outcome of the vote regarding the summoning of Guilherme Haddad will be closely watched. The Brazilian parliament’s decision could have significant implications for Binance’s operations in the country and may contribute to the broader global regulatory landscape for cryptocurrency exchanges.