Binance, the world’s largest cryptocurrency exchange, headed by CEO Changpeng Zhao and three other top executives, is currently under investigation by a Brazilian congressional committee comprised of 28 members. This committee has recommended that local law enforcement authorities pursue legal action against the company, citing alleged unauthorized operations and securities trading.
Furthermore, Binance is currently facing scrutiny from the Securities and Exchange Commission of Brazil (CVM) concerning its derivative sales, despite an existing stop order. The congressional committee has additionally urged the Federal Public Prosecutor’s Office to launch investigations not only into Binance’s local unit but also into Binance Capital Management.
In response to these grave allegations, Binance vehemently denies any wrongdoing. In a statement issued on Tuesday, the company attributes these accusations to competitive disputes arising from its dominant position in the industry. Binance also stated that it has made unsuccessful attempts to collaborate with the congressional committee in addressing these concerns.
This recent development compounds the mounting regulatory challenges confronting Binance. The company has already exited from markets in Russia, Canada, and Germany due to similar legal and regulatory issues. Amidst these formidable challenges, there is now uncertainty surrounding Binance’s potential withdrawal from the Brazilian market, marking its fourth major exit. The company, however, has yet to make a definitive announcement regarding this matter.
