Changpeng "CZ" Zhao, the co-founder of Binance, has thrown his support behind the idea of a unified crypto licensing framework across Southeast Asia, arguing that letting firms carry approvals across borders would streamline operations and lower barriers for the industry.
A Push for Regional Harmonization
CZ's endorsement centers on the concept of "passporting," a system that would allow a crypto company licensed in one ASEAN member state to operate across others without securing separate approvals in each jurisdiction. The approach mirrors frameworks already used in traditional finance and in regions like the European Union, where a single license can grant access to multiple markets.
The proposal aims to cut down the duplicative paperwork and repeated regulatory hurdles that companies currently face when expanding across the 10-nation bloc. For crypto firms, navigating a patchwork of national rules can be both time-consuming and expensive.
A single passport across ASEAN could turn a fragmented market into a unified gateway for crypto innovation.
Lower Costs and More Competition
Supporters of passporting say the model would deliver several practical benefits for businesses and consumers alike. By reducing the friction of entering new markets, the framework could encourage more players to compete and expand throughout the region.
Key advantages cited for the approach include:
- Simplified and faster approval processes for licensed firms
- Reduced compliance and operational costs
- Greater competition among crypto service providers
- Easier regional expansion for startups and established companies
The endorsement comes as regulators across Asia continue to weigh how best to oversee digital assets, balancing consumer protection with the desire to foster innovation. A coordinated regional stance could position ASEAN as a more attractive destination for crypto businesses seeking clearer rules and broader market access.
Whether member states will move toward such a unified system remains uncertain, as each country maintains its own regulatory priorities and stages of crypto adoption. Still, backing from a figure as prominent as CZ adds weight to the broader conversation about how the region can better coordinate its approach to digital assets.