Binance Brazil Exec Summoned to Testify in Congress Amid Regulatory Crackdown
• Binance Brazil’s executive, Guilherme Haddad, has been summoned to testify in the Brazilian Parliament amid a global regulatory crackdown on Binance.
• Alfredo Gaspar, a member of the Brazilian Chamber of Deputies initiated the summons as part of an ongoing investigation into pyramid schemes in the country.
• Brazil’s authorities have also been investigating Binance for allegedly helping clients evade a stop order on investing in crypto derivatives.
Binance Brazil Executive Called to Testify in Congress
Amidst a global regulatory crackdown on Binance, the director of Binance Brazil, Guilherme Haddad, has been summoned to testify before the Brazilian parliament. Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, initiated the summons as part of an ongoing investigation conducted by the Parliamentary Commission of Inquiry (CPI), which is examining allegations of pyramid schemes in the country.
Request for Testimony Submitted
The request was submitted on June 21st and other CPI members will vote on it on June 27th. If approved, Haddad will be required to appear before the country’s Chamber of Deputies.
Regulatory Issues Faced by Binance Globally
Binance has so far clashed with authorities from countries such as US, UK, France and Netherlands. Now Brazil is added to this list where Binance faces scrutiny due to multiple regulators targeting them at once after discovering that they had been offering products without proper licenses. In response to this situation earlier this year, Binance removed these investment products and increased its compliance team size.
Allegations Made Against Binance Brazil
Brazilian deputy Gaspar argues that: “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,” linking it back to their ongoing investigation into pyramid schemes in the country. Additionally Brazilian authorities suspect that Bince has been helping its Brazil-based clients evade a stop order on investing in crypto derivatives despite being pressed not do so.
The last time multiple regulators targeted Binace was when many nations discovered that they were offering products without having proper licenses but now Brazil is added to this list where binance faces scrutiny due to multiple regulators targeting them at once again leading negative international attention towards them .