Binance, a cryptocurrency exchange, is currently facing legal challenges in several jurisdictions around the world. Now, a Brazilian lawmaker, Alfredo Gaspar, has requested that the General Manager of Binance Brazil, Guilherme Haddad Nazar, appear before the National Congress to answer questions regarding the company’s operations in cryptocurrency management and possible partnerships with national companies involved in financial services associated with cryptocurrencies.
Justification
Gaspar’s request is based on the U.S. Securities and Exchange Commission’s civil suit against Binance Holdings, Ltd. and its affiliates, which alleges securities law violations. He also cited the Brazilian Securities and Exchange Commission’s decision to reopen an administrative proceeding against Binance and its Brazilian representative, B Fintech. In addition, a São Paulo court froze 500,000 Brazilian Real from Binance due to suspicions of operating a pyramid scheme.
Gaspar also noted that Binance or one of its affiliates faced similar inquiries in Japan, China, Germany, and the United Kingdom, writing, “A common thread in these cases is the company’s failure to comply with the regulations imposed by each country.”
Recent Developments
As pressure from authorities increases, Binance has begun to pull out of markets that seem less viable in the face of enforcement action. In the United Kingdom, it withdrew its FCA registration application on June 19. Prior to that, on June 15, it ceased operations in the Netherlands altogether after it failed to secure a critical VASP license. On June 13, Binance.US ceased support for USD trading pairs, opting to continue operations as a “crypto-only” exchange as its U.S. banking partners ended their relationships with the embattled exchange.
Guilherme Haddad Nazar, who was appointed to his position in December 2022, is the nephew of Fernando Haddad, Brazil’s Minister of Finance. He previously held leadership positions at Uber and Loft.
Alfredo Gaspar de Mendonça Neto is a Federal Deputy in Brazil’s Chamber of Deputies, one of two legislative houses making up its National Congress. A former prosecutor, Gaspar’s background includes coordinating the State Group to Combat Criminal Organizations and serving as both Secretary of State for Social Defense and as Attorney General of Justice for the Public Ministry of Alagoas.
In summary, Binance is facing legal challenges in Brazil and several other jurisdictions around the world. As authorities increase pressure on the cryptocurrency exchange, it has begun to withdraw from markets that seem less viable in the face of enforcement action. Brazilian lawmaker Alfredo Gaspar has requested that Binance General Manager Guilherme Haddad Nazar appear before the National Congress to answer questions regarding the company’s operations.
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