This month, the crypto company faced problems with regulators in at least four countries. This month, the crypto company faced problems with regulators in at least four countries.
Guilherme Haddad, the director of Binance in Brazil, may be summoned to appear before the Brazilian Parliament. This is because investigation is going on regarding the crypto company operating the pyramid scheme in the country. Congressman Alfredo Gaspar made the summons, and a vote on the issue will be held on Tuesday, June 27.
One of the major issues this time around is that some entities like BriasCompany, which run pyramid schemes and conduct activities that are against the interests of the Brazilian people, are using crypto exchange platforms to facilitate their activities. Are.
Alfredo Gaspar is mentioned in a statement Translated to English:
“Therefore, we can conclude that Binance is fully engaged with the motivation of this CPI, and its performance in the country, its relationship with B Fintech (its official representative), as well as its relationship with the responding companies. It is important to understand the relationship. in court for harming Brazilian consumers.
This is not the first time that a similar issue has cropped up between the two binance and Brazilian officials. In 2020, the Brazilian Securities and Exchange Commission (CVM) had already ordered Binance to stop offering derivatives trading services in the country, saying the crypto company could not act as a securities intermediary. An order that Binance responded to in 2021.
However, Brazilian news website Portal do Bitcoin reported in 2022 that Binance did not shut down its futures services against the CVM’s order. The company decommissioned the service in Brazilian Portuguese, but the service still allowed Brazilian users to change their language and invest freely. Furthermore, the company’s support also guides Brazilian users on how to use the service.
Brazilian parliament summons Binance amid regulatory pressure in various countries
The South American country’s authorities are also feeling the need to get tough on Binance’s activities in the kingdom given the regulatory issues that are occurring in other regions.
This month, the crypto company faced problems with regulators in at least four countries. France opened an investigation into Binance for various crimes, including serious money laundering. Various documents and materials are being studied thoroughly to determine the next course of action. Crypto exchange was unable to secure a virtual asset service provider in Holland, so it planned Leave business in the country. For the past few days, exchange users in the country have been withdrawing their money.
regulatory in the United States sued on Binance is accused of allegedly operating an illegal business there. It was also said that the company is misusing billions of dollars of customers’ funds. The crypto exchange’s registration with the United Kingdom Financial Conduct Authority was also revoked, meaning that Binance will not be able to conduct regulated activities and products in the region. however, some reports Said it was done at the request of the company.
In addition to issues with regulators and the government, Binance has a pending case with former Brazilian payments processor Capital. In 2022, Capital could not withdraw money from Binance for 20 days, which the payment processor deemed to be against central bank policies. Approximately $94 million was seized as a result. The matter is still in court as the court has not yet approved Binance’s request to unfreeze the account.
Temytop is a writer with over four years of experience writing in various fields. He has a special interest in the Fintech and Blockchain sectors and enjoys writing articles in those fields. He holds bachelor’s and master’s degrees in linguistics. When he is not writing, he trades forex and plays video games.
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