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Brazilian Deputy Alfredo Gaspar called for Guilherme Haddad, the head of Binance Brazil, to testify before parliament in an investigation into suspected pyramid schemes in the country. The Parliamentary Commission of Inquiry (CPI) is scheduled to decide on Gaspar’s request on June 21 and June 27.
Haddad will be obliged to answer questions before the Brazilian Chamber of Deputies, contingent on the result of the vote, according to the Brazilian publication Porto do Bitcoin. The request reads:
“We can know that Binance is fully involved in the motivation of this CPI and it becomes fundamental to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its connection with companies which is judicially liable. harmful to Brazilian consumers.”
It comes as Binance, the world’s largest cryptocurrency exchange, grapples with mounting international regulatory pressure. Scrutiny has come from various corners including the United States, Australia, the Netherlands and, now, Brazil.
Gaspar further accused that Binance played a role in helping pyramid schemes in Brazil with asset transfers, because “on March 11, 2023, the Justice of São Paulo blocked R $ 500 thousand reais in Binance for a suspected pyramid.” He emphasized the need to understand Binance’s dealings, its relationship with B Fintech and any potential links to companies currently facing legal issues for the detriment of Brazilian consumers:
“There is also a possible partnership with Brazilian companies that offer financial services that correspond to the scope of what is proposed in the amendment of the petition for the creation of this CPI to be investigated.”
Brazilian regulatory authorities said the proposed summons was prompted by the global regulatory scrutiny Binance is experiencing, citing the company’s “failure to respond to regulation imposed in each country.” Binance’s operations in Brazil are also being investigated by the Federal Prosecutor’s Office and Federal Police for potentially helping clients bypass the ban on investments in cryptocurrency derivatives.
