In a recent development, Binance CEO Changpeng Zhao and three local executives in Brazil could face indictment for alleged financial crimes linked to cryptocurrency-related pyramid schemes. This recommendation was made by a congressional committee on Wednesday. The committee’s report highlights accusations of fraudulent activities, unauthorized securities trading, and operation of an unlicensed financial institution. It also points to Binance’s creation of a network of legal entities, purportedly to evade legal compliance.
The report further calls for intensified scrutiny into Binance’s tax compliance, potential money laundering activities, and possible ties with organized crime and terrorism financing. The Securities and Exchange Commission (CVM) has been urged to examine Binance’s sale of derivatives products, marking a repeated violation of market regulations.
This news follows the congressional committee’s suggestion on Tuesday to indict three Binance officials, including CEO Changpeng Zhao, for alleged financial misconducts. In response to these allegations, Binance emphasized its global compliance program while refuting the charges.
The committee’s probe also flagged an additional 42 individuals for investigation. Federal Police, Federal Revenue, and Federal Public Ministry have been urged to scrutinize companies like Binance more closely.
Amid these regulatory challenges globally, Binance has made efforts to comply with various international regulations. The company partnered with Rebuildingsociety.com to meet the UK’s Financial Conduct Authority regulations on crypto marketing but encountered restrictions nonetheless. Binance exited the Russian market following a deal with CommEX and faced regulatory issues in Belgium.
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