Outstripping Chinese rivals! Zhao Changpeng believes exchanges should have a global mindset, recently expanding into the UK.

Since 2017, Binance cryptocurrency exchange has been expanding its influence in the cryptocurrency industry, covering various trading markets such as spot, futures, options, etc. CEO Changpeng Zhao (CZ) recently interviewed by Cointelegraph, elaborating on the four key elements necessary for launching a successful exchange. On the 17th, following the Indian market, Binance announced its entry into the UK.

Changpeng Zhao: Exchanges Should Have a Global Perspective

CZ emphasized the importance of a global perspective and pointed out that cryptocurrency exchanges that often claim to be "global" tend to focus on specific regions, limiting their international development opportunities. He stated:

First of all, I think you need a global mindset. Many cryptocurrency exchanges claim they are global exchanges, but if you look closely, they only focus on specific regions, usually where their team is located. These exchanges only provide products and customer service in one or two languages, and typically hold offline events in that region as well. Naturally, most of their users also come from that region.

Realizing "true global thinking" is a challenging task in itself, CZ continued:

If founders have not lived and worked around the world, it will be difficult for them to have a global mindset. If you have it, the rest is execution, but execution is also very difficult.

Recently, The Block, a media outlet known for exposing gossip about Binance, suggested that CZ is likely not concerned about the threats from Chinese rivals Huobi and OKEx. An alleged internal email mentioned that CZ told employees that their Chinese competitors were using crude tactics such as DDoS attacks, fake intellectual property rights users, fake news, and reporting to Chinese authorities. However, CZ told employees that the competitors' belief that Binance's government relations in China were weaker than theirs is incorrect. He even stated that if the competitors continue this way, they will only dig their own grave.

The Four Key Steps to Binance's Success

Sustainable Business Model

CZ stated that founders must first assess whether there is a successful business model and a clear path to profitability before expanding rapidly, even globally.

Understanding User Preferences

These preferences vary by country and region, so the ability to adjust and customize service content is essential, as CZ pointed out:

When a company operates in multiple markets, it must ensure that its products are tailored to each market and continue to provide value and incentives to users. Exchanges should also quickly adapt to changes, continuously develop and release new products to meet the diverse and growing demands of each market.

Legal Compliance and Security

CZ believes that maintaining contact with regulatory authorities is crucial:

Global cryptocurrency exchanges should work closely with local governments or regulatory agencies to allow local users to trade on the platform without concerns. In addition, centralized exchanges hold large amounts of funds and user data, so they should continue to optimize their technology and security systems.

View Industry Development as a Responsibility

Finally, CZ pointed out that compared to traditional financial markets, cryptocurrency exchanges are still in their early stages. He observed:

Only one out of about a thousand people is a cryptocurrency user, so the adoption rate is still very low. Therefore, industry leaders should take on the responsibility of driving industry development, raising industry standards, and promoting the widespread adoption of cryptocurrencies.

CZ concluded that this does not apply to the development of all exchanges, especially as new challenges arise with business growth. He believes that "adapting to change," "putting users first," and "ensuring profitability" are key to helping businesses develop in the long term.

Announcing Entry into the UK Market

According to a Reuters press release, Binance will establish a compliant fiat currency exchange in the UK this summer, allowing deposits and withdrawals in pounds and euros, and will be regulated by the UK regulatory authority. Unlike the U.S. legal system, the UK is relatively more lenient, and Binance is expected to list up to 65 digital assets on its UK branch. Optimistic about the cryptocurrency market in the UK, from Binance's continuous launch of fiat trading pairs worldwide, acquisitions, or the establishment of exchanges, Changpeng Zhao is executing his four key steps.