Binance Brazil Executive Called to Testify in Congress Amid Regulatory Crackdown
Amidst a global regulatory crackdown on Binance, the director of Binance Brazil, Guilherme Haddad, has been summoned to testify before the Brazilian parliament.
Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, initiated the summons.
Haddad is expected to provide testimony as part of the ongoing investigation conducted by the Parliamentary Commission of Inquiry (CPI), which is examining allegations of pyramid schemes in the country.
The request was submitted on June 21st, and other CPI members will vote on it on June 27th.
The Brazilian news outlet Portal do Bitcoin wrote that the approval of the request would mean that Haddad has to appear before the country’s Chamber of Deputies.
Meanwhile, Binance continues to face regulatory issues in other markets. So far, the exchange has clashed with the authorities of the US, the UK, France, and even the Netherlands.
Brazil is now the newest country where Binance is facing scrutiny, which continues to bring negative international attention to the company.
The last time multiple regulators targeted Binance at the same time was when many nations discovered that the exchange had been offering products without having proper licenses.
At the time, Binance responded by removing the controversial investment products and boosting its compliance team.
However, Brazil’s deputy claims that the exchange was utilized by pyramid schemes in the country to enable asset transfers. Gaspar argued that:
"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 links Binance to the ongoing investigation."
Brazil’s authorities claim that the reason behind the summons
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