Binance Holdings Ltd. has installed its first board of directors, which signifies a very meaningful occurrence for the cryptocurrency exchange.
According to a Bloomberg report, the new board has a composition of seven members, combining company functional heads with external specialists to steer it through its operational and regulatory environment.
The New Board Composition
The board features Binance CEO and three other executives from within the company: Heina Chen, Jinkai He, and Lilai Wang. They are accompanied by three external members who are very knowledgeable from different industries. Gabriel Abed, previous Ambassador of Barbados to the United Arab Emirates and Kuwait; Arnaud Ventura, an entrepreneur with a track record of founding companies, such as PlaNet Finance; and Xin Wang, CEO at Bayview Acquisition Corp., serve as the selected external advisors. This mix of different participants is one of Binance’s strategies to improve its governance and compliance approaches.
Background and Developments
This announcement follows a year of lawsuits for Binance. The allegations that the exchange faced had to do with money laundering as well as unauthorized money transmission, and this ended with a plea of guilty to these. Binance agreed to pay the aggregate fines of $4.3 billion to resolve these issues. Further, the former CEO, Changpeng Zhao also pleaded guilty to the charges and agreed to a fine of $50 Million and terminated from the position.
After Zhao’s resignation, Richard Teng, who had earlier served as Binance’s Global Head of Regional Markets, was appointed the new CEO. The formation of the board of directors is one of the first major steps of Teng’s administration, and it indicates a transition toward the enhancement of the company’s adherence to global financial rules.
