Binance Under Scrutiny: Brazil Government Launches Investigation, Summons Director
Sohrab Khawas23 Jun 20232 min read
Under the cloud of scrutiny that is sweeping across the international cryptocurrency market, Brazil initiates a probe into Binance, the most prominent company in the industry.
The investigation has led to the summoning of Binance Brazil’s director, Guilherme Haddad Nazar, who is expected to testify before the country’s Congress. Nazar was asked to appear by Congressman Alfredo Gaspar of Brazil’s CPI of the Financial Pyramids.
The motion put forth by Gaspar is pending a vote by other CPI members. The committee’s forthcoming session, where the vote is scheduled to take place, is expected to convene on Tuesday, 27 June 2023.
Binance Under Regulatory Scrutiny Globally
Binance is no stranger to regulatory inquiries. The company has come under the watchful eyes of authorities in several countries, including the United States, Japan, China, Germany, and the United Kingdom. The Congressman highlighted these issues in his request for Nazar’s testimony.
In Brazil, the Securities and Exchange Commission (CVM) has an active investigation into Binance for allegedly offering derivative market products without the necessary authorizations.
This particular probe was sparked by a report from the Bitcoin Portal. Gaspar also noted that two investment operations, Ever Operations and Investments and Braiscompany, which were involved in pyramid schemes, used Binance to facilitate their asset transfers.
Given the points raised by the Congressman, understanding Binance’s operation in Brazil, its relationship with B Fintech (its official representative), and its connection with firms held legally responsible for harming Brazilian customers is of utmost importance to the committee’s work.
Binance’s Response
In response to the pending summons, Binance expressed its willingness for all relevant exchanges and financial institutions to partake in the CPI. The company emphasized its collaborative efforts with authorities in previous investigations and stated it has been instrumental in helping victims retrieve their lost funds. It further added that it provides constant and immediate assistance to law enforcement agencies.
