Binance appoints Gabriel Abed as Chairman of its first Board to address legal challenges signalling a proactive stance toward governance reform amidst mounting regulatory concerns.
The biggest cryptocurrency exchange in the world, Binance, has launched its first Board of Directors naming Gabriel Abed the new Chairman of the Board. This is a big change in the way the company is run and the bold step to deal with recent legal and regulatory problems.
Strengthening Binance’s Governance Practices
According to a Binance announcement on April 1, Gabriel Abed, known for having a lot of experience and knowledge in finance and foreign politics, will be in charge of Binance’s efforts to improve governance and regulatory compliance. Binance’s decision to hire him and Richard Teng as at the helm of Binance Holding’s Limited shows that the company wants to improve its control.
Arnaud Ventura and Xin Wang are two outside members of the new board. Heina Chen, Jinkai He, and Lilai Wang are three inside executives. These appointments, which took effect on March 7, show that Binance is taking the initiative to change its government.
Arnaud Ventura is the chairman of the board at Binance France. He is a partner at the business holding company Gojo & Company.
Per her LinkedIn profile, Xin Wang holds the position of CEO at Bayview Acquisition Corp. and offers guidance to financial institutions regarding acquisitions and Mergers.
Rebuilding Trust with Regulators
The goal of these changes is to restore trust with investors and authorities at a time when legal problems are growing, especially in Nigeria. The head of the Nigerian central bank said that $26 billion went through Binance Nigeria.
Following the troubles in Nigeria, Binance has taken the initiative to meet regulatory concerns. This includes stopping to back the Nigerian Naira and working with the police after two executives were arrested.
Last year, Binance settled with the US Department of Justice for more than $4 billion. One of the co-founders, Changpeng Zhao, quit his role as CEO and pleaded guilty as part of the deal. Zhao is going to be sentenced at the end of this April.
As part of the deal, Binance has to set up a compliance program to fix problems from the past. Richard Teng and the top compliance officer of the company are in charge of making sure that Binance follows all rules for compliance and transparency.
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