The appointment of a board of directors by Binance, the biggest cryptocurrency exchange in the world based on trading volume, is a big move in the right direction for the company's operations.
This action follows the exchange's guilty plea to US charges last year about sanctions violations and anti-money laundering (AML) offenses.
The First Board of Directors of Binance is revealed
The board has seven members, according to a Bloomberg story, with Gabriel Abed, a former Barbados ambassador to the United Arab Emirates, serving as chairman. Three other executives from the company—Heina Chen, Jinkai He, and Lilai Wang—as well as Binance CEO Richard Teng, are also members of the board.
Among the original members of Binance's staff are Chen, He, and Wang, who have allegedly been involved from the start. At Binance, Wang is in charge of the exchange's technological growth, while Chen is a senior executive and co-founder.
Expert opinions regarding the makeup of the board have been voiced. A board predominately made up of company insiders, according to Austin Campbell, an adjunct professor at Columbia Business School and consultant for blockchain companies, suggests "resistance" to outside control and oversight.
Additionally, Campbell notes that it might not be optimal to have a purported "lack of independent members" with "deep" experience in regulated financial risk or compliance. He does, however, agree that the appointment to the board is a positive move and stresses the significance of "effective governance" going ahead.
According to Bloomberg, the establishment of the board is perceived as a component of the company's endeavors to construct a traditional corporate framework, even if the exchange has not disclosed the location of its worldwide headquarters.
Binance wants to solve regulatory issues and restore confidence in the cryptocurrency sector by strengthening governance and compliance protocols. The success of the corporation in navigating the changing world of digital assets will depend on how well the board directs the company's future activities.
April 2024, Cryptoniteuae