Binance in Hot Water as Brazil Lawmaker Seeks Answers

• Binance, a major cryptocurrency exchange, is facing more legal pressure in Brazil due to a formal request from lawmaker Alfredo Gaspar.
• The request calls for the National Congress to summon Guilherme Haddad Nazar, General Manager of Binance Brazil, to provide clarifications regarding the company’s operations.
• This comes as the U.S. Securities and Exchange Commission has filed a civil suit against Binance Holdings Ltd and its affiliates for securities law violations.

Binance Facing Legal Pressure in Brazil

Binance, one of the world’s leading cryptocurrency exchanges, is facing increased legal pressure in Brazil. Lawmaker Alfredo Gaspar has formally requested that the National Congress compel Guilherme Haddad Nazar, General Manager of Binance Brazil, to appear for questioning in order to „provide clarifications“ about the company’s operations in crypto asset management and potential partnerships with national companies involved in financial services associated with cryptocurrencies.

U.S SEC Civil Suit Against Binance Holdings Ltd

The request was made due to the U.S Securities and Exchange Commission filing a civil suit against Binance Holdings Ltd and its affiliates for alleged securities law violations. Brazilian Securities and Exchange Commission also released an official statement warning citizens about investing funds into cryptocurrency projects without proper authorization or registration from regulatory bodies like CVM (Brazilian SEC).

Gaspar Calls on National Congress To Summon Nazar

In response to these allegations, Gaspar called upon the Parliamentary Commission of Inquiry into Pyramid Schemes to summon Guilherme Haddad Nazar so that he can provide clarifications regarding the company’s operations and partnerships with companies related to cryptocurrencies.

SEC’s Concerns About Cryptocurrency Trading Platforms

The SEC has been actively investigating many cryptocurrency trading platforms claiming they may be violating US federal securities laws by offering unregistered securities on their platform or engaging in other activities that are not compliant with US regulations. This includes cases such as EtherDelta which was found guilty of operating an unregistered exchange earlier this year by settling charges brought on by SEC .


With authorities all around the world clamping down on non-compliant crypto exchanges it seems only natural that regulatory scrutiny would eventually come knocking at Binance’s doorsteps as well given its global presence and influence within the industry