The world’s largest exchange, Binance, is under severe pressure after regulatory action on its national subsidiaries. In the latest development, Binance’s Brazil subsidiary has become the latest arm of the exchange to face scrutiny from national authorities.
Brazilian Authority Subpoenas Binance CEO Over Pyramid Schemes Investigations
according to Local report By Brazilian news outlet Portal do Bitcoin Member of the Parliamentary Investigative Committee (CPI) on Financial Pyramids Representative Alfredo Gaspar introduced to request, Binance Brazil CEO Guilherme Haddad Nazar has been summoned to appear as a witness in ongoing investigations into pyramid schemes in the country.
In the arguments in support of his request, Deputy Jasper noted that some of the companies caught as pyramid schemes used Binance to transfer their assets. Examples of such companies are Ever Operations and Investments, Braiscompany, etc.
Gaspar said:
Therefore, we can conclude that Binance is fully intertwined with the drivers of this CPI, and it is necessary to understand its performance in the country, its relationship with B Fintech (its official representative), as well as its association with companies that respond in court to harm Brazilian consumers.
Furthermore, the Brazilian congressman and two-time Attorney General of Justice pointed out the regulatory issues that Binance faces in various countries, most notably United State.
In addition, MP Gaspar also highlighted the ongoing investigations into the stock exchange in Seychelles by the Brazilian Securities and Exchange Commission – Comissão De Valores Mobiliários (CVM) – for the unauthorized sale of derivative market products.
The request was submitted by the congressman yesterday, June 21, and is subject to approval by other members of the CPI at the next meeting, scheduled for June 27.
Binance’s regulatory challenges continue
After the recent development in Brazil, the South American country may be the latest to join the growing list of regions where Binance has faced some regulatory and operational issues.
The world’s largest stock exchange recently de-registered its UK and Cyprus subsidiaries while shutting down its Dutch market due to failure to obtain an operating license.
Additionally, Binance is under investigation in France for alleged money laundering while it is locked in a legal battle with the US Securities and Exchange Commission (SEC) over allegations of unregistered exchanges and fraud, among other things.
The latest update reveals that Binance.US Made a proposal recently v. the Securities and Exchange Commission for making “misleading” statements about asset-exchange control.
In other news, the overall cryptocurrency market is currently on the upswing, with the total market cap up by 14.45% in the past week based on Data from Tradingview.
Total Crypto Market Valued At $1.135 Trillion | Source: TOTAL Chart From Tradingview.com
Featured image: Pixabay, chart from Tradingview