Binance.US has appointed Martin Grant, former Chief Compliance & Ethics Officer at the Federal Reserve Bank of New York, to its Board of Directors for BAM Management US Holdings, Inc.
Martin, currently serving as the global head of regulatory affairs at JST Digital, steps into this role following Changpeng Zhao's (CZ) resignation as chair of the board in the wake of Binance's multibillion-dollar settlement with (United States) US regulators over allegations of money laundering and sanctions violations.
Notably, Binance.US was not involved in these settlements.
On his appointment, he expressed that:
"It is an honour to join the Binance.US Board and be part of an organisation built from the ground up to connect Americans to the digital asset industry in a safe, responsible, and compliant manner. The American digital asset industry is at an inflection point, and I am excited to help guide the future of one of the country’s most influential and customer-centric crypto platforms."
Wealth of Experience and Connections
Joining the company in 2022, his role focuses on ensuring regulatory compliance, providing guidance to clients, and collaborating with global regulators amidst the evolving landscape of digital asset policies.
Prior to his tenure at JST Digital, Martin has amassed over 30 years of experience at the Federal Reserve Bank of New York.
From 2005 to 2022, he served as the New York Fed's Chief Compliance & Ethics Officer, overseeing various programmes related to anti-money laundering, sanctions enforcement, risk assessment, data privacy, third-party due diligence, trading compliance, ethics, and conduct.
Throughout his career, he cultivated relationships within the US government and with central banks worldwide.
Martin Grant's Appointment a Strategic Play?
With over three decades of experience in legal and compliance-focused roles within US government entities, Martin's extensive background, primarily at the New York Fed, brings invaluable insight to Binance.US, according to the exchange.
Martin's recruitment suggests a strategic move by Binance to address regulatory challenges, leveraging the expertise of a former Federal Reserve official known for implementing robust anti-money laundering programmes.
His addition to Binance.US may indicate a proactive stance toward regulatory compliance, signalling a potential shift within the global crypto exchange.
This move aligns with efforts to rebuild public confidence in the wake of recent legal controversies.
Norman Reed, the Interim CEO of Binance US, emphasizes Martin's appointment as pivotal during a thorough reassessment of the exchange's compliance strategy within the framework of US regulations.
Norman highlights Martin's role as instrumental, particularly amidst a critical juncture in the regulatory landscape of the US cryptocurrency industry.
He mentioned that:
"Martin is a world-class legal and ethical compliance executive with unparalleled experience instituting best practices in compliance, conduct, and governance at the highest levels of government and financial services. The addition of a director of Martin’s caliber to the Binance.US Board reflects the strength of our business and demonstrates our commitment to maintaining the highest standards of compliance and integrity. We look forward to benefiting from his expertise and counsel as we continue to navigate the current regulatory environment and position Binance.US for long-term growth and success."
Former Binance CEO CZ's Sentencing on 30 April
In November 2023, CZ faced charges related to the inadequacy of the anti-money laundering programme, failing to meet the standards set forth by the Bank Secrecy Act.
Consequently, he agreed to step down from his position within the cryptocurrency exchange.
In a settlement with federal authorities, both Binance and CZ were directed to pay $4.3 billion in restitution to address civil regulatory actions.
Presently, he faces a maximum penalty of ten years in a US prison.
However, the ultimate sentencing will be subject to sentencing guidelines and the discretion of the court.
His sentencing is slated for 30 April.
Binance.US's Legal Tussle with SEC
As the legal tussle unfolds, Binance.US finds itself in a courtroom confrontation with the US Securities and Exchange Commission (SEC).
The regulatory body is steadfast in its mission to enforce national securities exchange regulations upon American cryptocurrency trading platforms.
Last year, the SEC leveled allegations against Binance.US, along with Coinbase and Kraken, accusing them of operating as unregistered brokers, exchanges, and clearinghouses.
This accusation gained credibility in the eyes of at least one federal judge, notably in the Coinbase case.
Norman expressed confidence in their current standing with the SEC, indicating a positive outlook amidst the legal proceedings:
"My view is they did not provide very clear guidance to the markets about what was, which digital assets were securities or not. They relied on this Howey case about an orange grove that was decided in 1946 under very different factual circumstances, very different legal circumstances."
Binance.US COO Chris Blodgett added that:
"It's, of course, true that our trading volumes took a significant hit following the SEC's case and in our transition to a crypto only exchange."
Binance.US Establishes Board of Directors
Martin's appointment at Binance.US coincides with the establishment of the exchange's inaugural board, a development announced just two weeks prior.
Gabriel Abed, the former ambassador of Barbados to the United Arab Emirates, serves as the chairman of this newly formed seven-member board.
Brian
Beincrypto
cryptopotato
Others
Cointelegraph