A Change In 7 Years: Binance Forms a Seven-Member Board of Directors

Almost seven years after its launch, Binance Holdings, which operates the largest cryptocurrency exchange globally in terms of trading volume, has formed a seven-member Board of Directors. As announced yesterday (Monday), Gabriel Abed, the former ambassador of Barbados to the UAE, is the Chair of the Board.

Other members of Binance’s Board include Binance’s CEO, Richard Teng, the exchange’s Co-Founder, Heina Chen, Bayview Acquisition Corp’s CEO, Xin Wang, and Gojo & Company’s Managing Partner, Arnaud Ventura. Two earlier employees of Binance, Lilai (Roger) Wang and Jinkai (Rock) also joined the Board.

Binance Has a Board Now

Although the formation of the Board would bring some accountability to the CEO of Binance, its composition indicates there will be hardly any external interference.

The formation of the Board is the most significant move of Binance under the leadership of Richard Teng who took over as the CEO of the crypto exchange last November. He succeeded Changpeng Zhao, who pleaded guilty to money laundering and agreed to step down as Binance’s CEO as a part of his settlement, in the apex role.

After Teng was appointed the CEO, he emphasized his willingness to report to the Board.

Binance’s Tussle with Regulators

The leadership and structure of Binance faced heavy criticism over the years, especially from the regulators. The exchange became a giant in the cryptocurrency space without having a headquarters.

At first, Binance expanded aggressively across borders without any regulatory approvals. However, the exchange faced a wave of regulatory warnings and enforcement actions, squashing Zhao's aim to support almost every fiat on the globe during his exchange.

Last year, Binance and its now-former CEO, Zhao, faced allegations by regulators and prosecutors in the United States. While Zhao pled guilty, the exchange settled with the federal prosecutors and commodities regulator, agreeing to pay a combined monetary penalty of about $7.1 billion. However, the exchange is still fighting a legal battle with the Securities and Exchange Commission.

Most recently, Binance has tussled with the authorities in Nigeria following the detention of two of its executives. Interestingly, one of the executives escaped detention and fled from the country. A Nigerian has now been charged Binance with four counts of tax evasion.