Next Tuesday (6) the Parliamentary Commission of Inquiry (CPI) will be installed in the Chamber of Deputies with the aim of investigating financial pyramids that use cryptocurrencies as a fraud tool.
The inaugural meeting is scheduled for 2 p.m., in plenary 9.
The proposal for the creation of the CPI came from deputy Áureo Ribeiro, from the Solidariedade party, representing the state of Rio de Janeiro.
The initiative received the support of 171 delegates, reflecting widespread concern about illegal activities that have taken advantage of the cryptocurrency market.
The focus of the investigation will be on 11 companies identified by Brazil’s Securities Commission (CVM) as suspected of conducting fraudulent operations involving cryptocurrencies.
11 companies in sight
The companies are accused of spreading false information about projects and promising high guaranteed returns to attract investors and perpetuate a pyramid scheme.
The CPI is given an initial period of 120 days to conduct its investigations, which can be extended for an additional 60 days if necessary. Since its creation, in May this year, it has already been collegially formed with 32 members and 32 alternates, who will be responsible for the execution of the works.
Parliamentary committees of inquiry have investigative powers similar to those of judicial authorities. In this sense, the CPI will have the prerogative of summoning authorities, requesting documents and breaking secrecy with the approval of the majority of its members.
The creation of the CPI demonstrates the legislature’s concern in dealing with the growing number of cases related to financial pyramids in the cryptocurrencies universe.
The popularity and profit potential of the cryptocurrency market has attracted investors around the world, but it has also created room for fraudulent schemes.
Cryptocurrencies and financial pyramids
The use of cryptocurrencies as a means of payment in virtual financial transactions poses a series of regulatory challenges. The lack of specific regulations and the decentralized nature of cryptocurrencies make the environment conducive to fraudsters.
This situation requires the concerted action of regulators, government agencies and parliamentarians to develop mechanisms to protect the market and investors.
The CPI of financial pyramids with cryptocurrencies aims to clarify the mechanisms used by these fraudulent companies, identify those responsible and propose legislative measures that can more effectively prevent and punish this type of crime.
With the installation of the CPI, it is expected that there will be greater awareness of the risks of the cryptocurrency market and greater protection for investors. In addition, the research may lead to more comprehensive and effective regulatory proposals to combat illegal activities in the sector.
It is important to emphasize that the CPI’s action should not be seen as an action against cryptocurrencies per se, but rather an attempt to combat fraudulent practices that take advantage of this market.
The research aims to ensure a safe and transparent environment for the development of cryptocurrencies, contributing to their legitimacy and sustainable growth.
From its installation, the CPI of Cryptocurrency Financial Pyramids will have a responsibility to carry out a meticulous and impartial work, seeking to expose the truth and combat illegal practices.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
