Alfredo Gaspar, member of the Financial Pyramids Parliamentary Commission of Inquiry (CPI), has called Binance Brazil Director Guilherme Haddad to testify before congress.
Gaspar’s request is being considered as part of an ongoing investigation into the pyramid schemes allegedly operating in the country, published Wednesday (21 June). The request made by the MP needs to be voted on by the other members of the CPI. Voting on the call is expected to take place on June 27.
Binance Subjected to Review in Brazil
According to the news of Brazilian news site Portal do Bitcoin, Haddad will appear before the Brazilian House of Representatives, the lower house of congress, if the vote is approved.
Binance has recently faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom and Brazil, revealing the scale of multinational pressure on the company. Inviting Haddad to testify before Congress, MP Alfredo Gaspar emphasized that Binance is used by pyramid schemes such as Ever Operations and Investments and Braiscompany to facilitate asset transfers.
Gaspar said in a statement: “It is vital to understand Binance’s relationship with B Fintech and its relationship with companies that are facing legal action for harming Brazilian consumers. “Because this situation strongly links Binance with the ongoing investigation,” he said.
Officials in the South American country explained that the purpose of the calls was because the company is facing scrutiny from regulators around the world.
Binance is also being investigated by the Federal Prosecution and Federal Police in Brazil. The cryptocurrency exchange allegedly helped clients evade a stop order on their cryptocurrency derivatives investments.
According to an earlier report by Portal do Bitcoin, Brazilian regulator Comissao de Valores Mobiliarios (CVM) is pressuring Binance to stop offering Bitcoin futures products to Brazilian customers.
52986
