​Brazilian authorities begin to investigate the activities of the local arm of Binance

This development comes amid a global regulatory crackdown on Binance, which is facing investigations in multiple countries.

Deputy Alfredo Gaspar, a member of the Brazilian Chamber of Deputies, has requested the summoning of Guilherme Haddad, the director of Binance Brazil, to appear before the Brazilian parliament as part of an ongoing Parliamentary Commission of Inquiry (CPI) investigation into alleged pyramid schemes in the country.

The June 21 request will be voted on by members of the CPI on June 27.

According to a translation of the Brazilian news outlet Portal do Bitcoin, if the vote is approved, Haddad will be summoned to appear before the Brazilian Chamber of Deputies if the vote is approved. This development comes amid a global regulatory crackdown on the largest cryptocurrency exchange. Binance has faced scrutiny from authorities in the United States, France, the Netherlands, the United Kingdom and Brazil, underscoring international attention on the company.

Furthermore, the deputy claimed that Binance was utilized by pyramid schemes in the country to facilitate asset transfers.

He said:

“Hence, 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.“

Authorities in the South American nation explained that the intent for summons is due to the fact the company is facing the scrutiny mentioned above from regulators worldwide. In Brazil, Binance is also being investigated by the Federal Prosecutor’s Office and Federal Police. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.

The Securities and Exchange Commission of Brazil has already been pressing Binance to stop offering Bitcoin futures products to Brazilian customers, according to a previous report from Portal do Bitcoin.

Binance did not immediately reply to a request for comment from Cointelegraph by the time of publication.

This material is taken from the website https://cointelegraph.com.