This change occurs as Binance is the target of a global regulatory crackdown and is under investigation in several nations.
The director of Binance Brazil, Guilherme Haddad, has been called to appear before the Brazilian parliament, according to Deputy Alfredo Gaspar of the Brazilian Chamber of Deputies. This request is a component of a larger inquiry into alleged pyramid schemes in the nation being conducted by the Parliamentary Commission of Inquiry. The CPI wants to look into and address worries about cryptocurrency-related fraud schemes.
The CPI will decide on the summons request for Guilherme Haddad on June 27th. It was submitted on June 21st. Haddad will be forced to appear before the Brazilian Chamber of Deputies if accepted. The probe represents the government’s efforts to control the cryptocurrency market in Brazil, especially with regard to possible pyramid schemes that might have taken advantage of unwary investors.
The biggest cryptocurrency exchange, Binance, is currently under regulatory scrutiny on a global scale. Authorities have expressed concerns and opened investigations into its operations in a number of nations, including the United States, France, the Netherlands, the United Kingdom, and Brazil. This demonstrates the increased regulatory scrutiny and global interest in Binance’s operations.
According to deputy Alfredo Gaspar, Brazilian pyramid schemes used Binance to ease asset transfers. The goal of the investigation is to ascertain Binance’s level of engagement and potential guilt in these fraudulent actions. This emphasizes how crucial it is to have openness and accountability inside the cryptocurrency sector in order to safeguard investors and preserve market integrity.
In addition to the parliamentary probe, the Federal Prosecutor’s Office and Federal Police in Brazil are also looking into Binance. These authorities are looking into claims that Binance helped customers avoid a stop order on investments in bitcoin derivatives. The investigation’s goals are to find any potential financial rule infractions and confirm that the law is being followed.
Brazilian regulators from the Securities and Exchange Commission have previously demanded that Binance stop selling Bitcoin futures contracts to their citizens. The government’s efforts to enforce compliance and safeguard investors from potentially unsafe or unregulated financial products are evident in this regulatory action. It also reflects the continuous discussions between regulatory organizations and cryptocurrency exchanges about the best laws and security measures for the sector.