Guilherme Haddad, the Director of Binance Brazil, has been summoned to appear before the Brazilian parliament as part of a broader investigation into alleged pyramid schemes in the country.
The request was made public on Wednesday, June 21, 2023, by Deputy Alfredo Gaspar, a member of the Parliamentary Commission of Inquiry (CPI) on Financial Pyramids. However, the summoning request is subject to a vote by the other members of the CPI, scheduled for June 27, 2023.
Deputy Alfredo Gaspar specifically mentioned Binance’s involvement with pyramid schemes such as Ever Operations and Investments and Braiscompany, which has drawn attention and raised the need for further investigation. Gaspar also highlighted the importance of understanding Binance’s business practices, its relationship with B Fintech, and its association with companies facing lawsuits for harming Brazilian consumers. These factors directly link Binance to the ongoing investigation.
If the request is approved, Guilherme Haddad would be required to participate in a debate at the Brazilian Chamber of Deputies, the lower chamber of Congress in Brazil.
This development comes at a time when cryptocurrency exchanges are facing increased regulatory scrutiny worldwide. Binance, in particular, has been the subject of lawsuits and investigations by authorities in the United States, France, the Netherlands, and now Brazil.
Moreover, Binance has previously faced pressure from Brazil’s regulatory body equivalent to the United States Securities and Exchange Commission (SEC), known as the Comissão de Valores Mobiliários (CVM). The CVM had urged Binance to discontinue offering Bitcoin futures contracts to Brazilian consumers, as reported by Portal do Bitcoin.
Furthermore, the Federal Police and the Federal Prosecutor’s Office in Brazil are currently investigating Binance for its alleged assistance to clients in circumventing a stop order on investments in bitcoin derivatives.
In a separate development, Binance has reportedly initiated the operation of nodes on the Bitcoin Lightning Network, aligning with its strategic objective of establishing seamless deposits and withdrawals. Binance confirmed this in a tweet on June 20, 2023, responding to users who had noticed their newly implemented lightning nodes.
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