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Binance Operations In Brazil Under Investigation Amidst Its Global Regulatory Issues

Bitcoinist

Bitcoin News / Bitcoinist 55 Views

World’s biggest exchange, Binance, is under heat following regulatory crackdowns on its national subsidiaries. In the latest developments, Binance’s branch in Brazil becomes the newest arm of the exchange to face scrutiny from national authorities.

Brazilian Panel To Summon Binance Executive Over Pyramid Schemes Investigations

According to a local report by Brazillian news outlet Portal do Bitcoin, a member of the Parliamentary Commission of Inquiry (CPI) of the Financial Pyramids, Deputy Alfredo Gaspar, has submitted a request, summoning the Executive Head of Binance Brazil, Guilherme Haddad Nazar, to appear as a witness in the ongoing investigations into the pyramid schemes in the country. 

In supporting arguments for his request, Deputy Gasper noted that some companies busted as pyramid schemes had used Binance to move their assets. Examples of these firms included Ever Operations and Investments, Braiscompany, etc. 

Gaspar said:

Therefore, we can deduce that Binance is entirely intertwined with the motivation of this CPI, and it is essential to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its connection with companies that respond in court for harming consumers Brazilians.

Furthermore, the Brazilian congressman and two-time attorney general of justice pointed to the regulatory issues Binance is experiencing in various countries, most notably the United States.

In addition, Deputy Gaspar also highlighted the ongoing investigations into the Seychelles-based exchange by Brazil’s Securities and Exchange Commission – Comissão De Valores Mobiliários (CVM) – for the unlicensed sale of derivative market products. 

The request by the congressman was made yesterday, June 21, and is subject to approval by other members of the CPI at the next meeting, which is scheduled for June 27. 

Binance Regulatory Challenges Continue

Following the recent development in Brazil, the South American nation may be the latest country to join the growing list of regions in which Binance has encountered some regulatory and operational issues.

The world’s biggest exchange recently deregistered its subsidiaries in the United Kingdom and Cyprus while closing down its Dutch market due to failure to obtain an operational license.

In addition, Binance is under investigation in France over alleged money laundering while in a legal battle with the United States Securities and Exchange Commission (SEC) over allegations of unregistered exchange operations and fraud, among others. 

The latest update reveals that Binance.US recently filed a motion against the SEC for making “misleading” statements about the exchange assets control.

In other news, the general crypto market is currently on a bounce, with its total market cap boosting by 14.45% in the last week based on data from Tradingview.

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