Binance co-founder CZ backs crypto license passporting across ASEAN
Source Entity
Cointelegraph by Ezra Reguerra
Binance co-founder Changpeng Zhao has endorsed a crypto license passporting system for the ASEAN region. This initiative aims to streamline regulatory compliance and foster cross-border digital economic growth.
The Push for ASEAN Crypto Harmonization
At the recent ASEAN Tech Summit Manila 2026, Binance co-founder Changpeng “CZ” Zhao voiced strong support for a regional “crypto license passporting” system. This proposal, initially raised by FinTech Alliance PH founding chair Lito Villanueva, seeks to address the significant regulatory friction currently hindering the expansion of digital asset firms across Southeast Asia. By advocating for license portability, Zhao is pushing for a paradigm shift that could fundamentally reshape how crypto and stablecoin services navigate the diverse legal landscapes of the ASEAN bloc.
Overcoming Regulatory Fragmentation
Currently, the ASEAN region is characterized by a fragmented regulatory environment, where each nation maintains its own stringent and often disparate licensing requirements for digital asset service providers. For global firms, this necessitates a laborious, market-by-market application process that is both costly and time-consuming. Zhao’s proposal suggests that if a firm is already vetted and regulated in one ASEAN jurisdiction, they should be granted a simplified, expedited approval process when entering other member nations, rather than being forced to restart the entire compliance cycle.
Reducing Barriers and Enhancing Competition
The primary argument for this passporting initiative is the reduction of compliance overheads. By streamlining these processes, regulators can lower the barriers to entry for startups and established players alike. This, in turn, is expected to encourage greater market competition, fostering innovation in the stablecoin and blockchain sectors. A more unified regulatory framework would allow services to scale rapidly across borders, providing consumers with better access to digital financial tools while maintaining the oversight necessary to protect the regional economy.
The Role of Regulatory Oversight
It is important to note that the proposal does not advocate for an unregulated environment. Zhao explicitly clarified that regional regulators would retain the authority to review applicants. The core of the recommendation lies in the efficiency of the mechanism: shifting from a 'blank slate' application model to a secondary review process that acknowledges prior regulatory vetting. This balance ensures that national authorities maintain control over their jurisdictions while participating in a more collaborative and efficient regional ecosystem.
Broader Implications for the Digital Economy
As the 'One ASEAN, One Digital Economy' initiative gains momentum, the adoption of license passporting could serve as a template for other emerging markets. By reducing the friction associated with cross-border digital services, the ASEAN region can position itself as a unified hub for financial technology. If successfully implemented, this framework could catalyze the adoption of stablecoins and crypto-based payment systems, ultimately strengthening the digital financial infrastructure of the entire region and setting a global standard for regional regulatory cooperation.