At Token2049 Dubai, Binance founder Changpeng Zhao sheds light on global regulatory hurdles and praises the UAE’s crypto-friendly environment.
Making a rare public appearance, Binance founder Changpeng Zhao (CZ) spoke candidly at the Binance Fireside Chat during the Token2049 event in Dubai. Speaking with Raoul Pal, CEO of RealVision, CZ detailed the ongoing regulatory challenges Binance faces across different jurisdictions.
One key issue, according to CZ, is the insistence of many regulators on “localised” solutions — a model he believes is inefficient for global crypto operations.
“Localised Demands Are Not Scalable,” Says CZ
CZ explained that regulators in multiple countries demand local custody solutions, local order books, and even local teams. While understandable from a compliance standpoint, such demands strain resources significantly.
“Setting up secure custody solutions for billions of dollars requires immense money, resources, and expertise,” CZ said. “If we have to replicate this 200 times around the world, it’s simply not feasible — we don’t have enough people.”
He stressed that creating isolated operations for every country weakens the overall efficiency and security of a global exchange like Binance.
Praise for UAE’s Pro-Crypto Stance
While outlining regulatory hurdles elsewhere, CZ had only positive words for the United Arab Emirates. Reflecting on his move to Dubai, he shared that in 2021, a friend’s recommendation led him to visit the UAE, and it took him less than a week to decide to stay.
“The UAE is incredibly pro-business and pro-crypto. The ministers here are smart, sophisticated, and genuinely understand the industry,” CZ said. He also emphasised that despite negative stereotypes portrayed by Western media, the UAE remains one of the safest places globally.
A Glimpse into Binance’s Regulatory Strategy
Throughout the conversation, CZ hinted that Binance is committed to working collaboratively with regulators but will continue advocating for frameworks that enable global scalability. He acknowledged that the path to regulatory clarity in crypto is still unfolding and that flexibility and education on both sides are crucial for the sector’s growth.
