Binance faces scrutiny in Brazil, exec summoned to testify before Congress

This development comes amid a global regulatory crackdown on Binance, which is facing scrutiny in multiple countries.

Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has requested the summoning of Guilherme Haddad, the director of Binance Brazil, to appear before the Brazilian parliament as part of an ongoing Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes in the country.

The June 21 request will be voted on by members of the CPI on June 27. 

According to a translation of the Brazilian news site Portal do Bitcoin, if the vote is approved, Haddad will face the Brazilian Chamber of Deputies, which is the lower house of Congress. This development comes amidst a global and extensive regulatory crackdown on the cryptocurrency exchange. The exchange has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom, and Brazil, underscoring the multinational attention on the company.

Furthermore, the deputy highlights that Binance was utilized by pyramid schemes such as Ever Operations and Investments and Braiscompany to facilitate their 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.”

Authorities in the South American nation explained that the intent for summons is due to the fact the company is facing the above-mentioned scrutiny from regulators around the world. In Brazil, Binance is also being investigated by the Federal Prosecutor’s Office and Federal Police. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.

Related: Binance, Binance.US and CZ allege SEC made ‘misleading’ statements on exchange assets

The Brazilian equivalent of the United States Securities and Exchange Commission (SEC), Comissão de Valores Mobiliários (CVM), has already been pressing Binance to stop offering Bitcoin futures products to Brazilian customers, according to a previous report from Portal do Bitcoin.

Binance did not immediately reply to a request for comment from Cointelegraph at the time of publication.

Magazine: US and China try to crush Binance