Binance Appoints First Board of Directors Amid Regulatory Overhaul

Cryptocurrency exchange Binance has formed a founding board of directors. This development is in response to the company’s guilty plea to U.S. charges, including anti-money laundering and sanctions violations.

Gabriel Abed, previously Barbados’ ambassador to the United Arab Emirates, has been appointed chairman of the new seven-member board.

Binance Board of Directors Lack External Oversight: Critics

The composition of the Board reflects a mix of internal leadership and external expertise. Along with Abed, Binance CEO Richard Teng and long-time executives Heina Chen, Jinkai He, and Lilai Wang joined the board.

External members Arnaud Ventura and Xin Wang strengthen the Board with diverse perspectives. This personnel change took effect on March 7th.

Under Teng’s leadership, which began in November, Binance is undergoing significant changes. After reaching an agreement with US authorities, the exchange is transitioning to a more traditional corporate framework. This includes establishing a formal board of directors and potentially establishing a final headquarters.

Read more: Binance Review 2023: Is It the Right Crypto Exchange for You?

The $4.3 billion settlement, one of the largest in U.S. legal history, highlights the intense regulatory scrutiny of cryptocurrency exchanges.

Due to the board’s internal dominance, the move was met with mixed reactions. Experts such as Austin Campbell, a consultant to blockchain companies, have expressed concerns about limited external oversight of boards and the need for more seasoned financial compliance experts.

“The fact that Binance has a board of directors comprised primarily of company insiders shows that they are still resistant to external control and oversight,” Campbell said. “The lack of depth is not ideal,” he said.

Moreover, Binance’s legal troubles are not over yet, as founder Changpeng Zhao awaits sentencing in April. Zhao’s potential 18-month prison sentence signals serious repercussions for failing to comply with regulatory standards.

Binance’s regulatory issues are growing internationally. For example, Nigeria recently condemned exchange tax evasion. This case highlights global enforcement issues, highlighting the importance of regulatory compliance for cryptocurrency companies.

Read more: Cryptocurrency regulation: what are the pros and cons?

However, the ultimate impact of these governance reforms on Binance’s operational integrity is yet to be revealed.
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