On June 21, Brazilian Deputy Alfredo Gaspar called for Guilherme Haddad, the head of Binance Brazil, to appear before the legislative arm of the Brazilian government as part of an investigation into possible pyramid schemes in the country. The Parliamentary Commission of Inquiry (CPI) is expected to decide whether to allow or deny Gaspar’s request of having Haddad appear before Parliament, on June 27. Depending on the results of the vote, Haddad might be required to appear before the Brazilian Chamber of Deputies.
Gaspar’s request to parliament read: Brazil is calling for investigations into the biggest cryptocurrency exchange in the world as it battles increasing international regulatory pressure. Regulators in the United States, Australia, the European Union, and now Brazil have all unleashed their wrath on Binance. According to Gaspar, Binance assisted Brazilian pyramid schemes by transferring assets on March 11, 2023, when “the So Paulo Justice blocked R$ 500 thousand reais in Binance for a suspected pyramid.” He emphasized the significance of comprehending Binance’s activities, its connection to B Fintech, and any potential ties to businesses currently involved in legal disputes that harm consumers in Brazil.
Brazilian regulatory authorities claimed that Binance is under intense regulatory scrutiny worldwide as a result of “the company’s failure to respond to the regulation imposed by each country,” which is why they are proposing the summons. The Federal Prosecutor’s Office and Federal Police are also looking into Binance’s operations in Brazil for possibly helping customers get around a restriction on cryptocurrency derivatives investments.
