Binance, the world’s largest exchange, led by CEO Changpeng Zhao and three other executives, is currently under investigation by a Brazilian congressional committee consisting of 28 members. The committee has recommended that local police pursue charges against the company for unauthorized operations and securities trading.
In addition to these potential indictments, Binance is also being scrutinized by the Securities and Exchange Commission of Brazil (CVM) over its derivative sales, despite a stop order. The committee has further urged the Federal Public Prosecutor’s Office to investigate not only Binance’s local unit but also Binance Capital Management.
In response to these allegations, Binance has denied any wrongdoing. In a statement made on Tuesday, the company attributed these accusations to competitive disputes stemming from its industry leadership position. It also expressed unsuccessful attempts to collaborate with the committee to address these issues.
This development adds to the escalating regulatory challenges faced by Binance. The company has already withdrawn from markets in Russia, Canada, and Germany due to similar legal and regulatory issues. Amidst these challenges, there is now uncertainty over Binance’s potential fourth major exit from Brazil. The company has yet to make a definitive announcement regarding this matter.
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