Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has requested the appearance of Guilherme Haddad, director of Binance Brazil, before the Brazilian Parliament in the framework of an ongoing investigation of the Parliamentary Investigation Commission (CPI) on alleged pyramid schemes in the country.
On June 27, ICC members will vote on the application June 21.
According to a translation of the Brazilian news outlet Portal do Bitcoin, if the vote is approved, Haddad will be summoned to appear before the Brazilian Chamber of Deputies. This development comes amid a global regulatory crackdown on the largest cryptocurrency exchange.. Binance has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom, and Brazil, underscoring international attention on the company.
Besides, the deputy claimed that Ponzi schemes were using Binance in the country to facilitate asset transfers.
“Therefore, 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, as this strongly ties Binance to the ongoing investigation.”
The authorities of the South American nation explained that the intent of the subpoena stems from the fact that the company faces the aforementioned scrutiny from regulators around the world. In Brazil, Binance is also being investigated by the Federal Prosecutor’s Office and the Federal Police. The crypto exchange has allegedly been helping clients evade a stop order on investments in cryptocurrency derivatives.
The Brazilian Securities and Exchange Commission has already been pressuring Binance to stop offering bitcoin futures products to Brazilian clients., according to a previous report from Portal do Bitcoin.
Binance had not responded to Cointelegraph’s request for comment at the time of publishing this article.
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