- CZ said he would block U.S. users until securing all required licenses before launching a platform.
- He rejected claims he ignored regulations, saying the industry lacked clear rules in its early years.
- CZ said Binance prioritized user protection over profits, helping support its long-term growth.
Binance founder Changpeng Zhao (CZ) says the biggest decision he would change if launching a new platform today is how he would handle the U.S. market.
Speaking during a live show hosted by Gareth Jenkinson in Abu Dhabi, CZ reflected on Binance’s rapid growth, the regulatory scrutiny it faced in the United States, and the lessons he learned.
Jenkinson asked CZ whether he regretted Binance’s aggressive expansion and the exchange’s “ask for forgiveness rather than permission” approach. In response, CZ said hindsight offers a much clearer perspective.
“I would just block all U.S. users”
CZ said there were many small mistakes along the way, but the biggest lesson was learning to operate in the United States.
If he were launching a platform today, he said he would either block all U.S. users until obtaining the required licenses or enter the market only after becoming fully licensed.
According to CZ, his understanding of financial regulations has changed significantly over the years. Looking back, he believes this would have been the right approach. He added that most other mistakes can be corrected over time, including many of the issues Binance faced during its regulatory journey.
CZ Rejects Claims He Ignored Regulations
CZ also addressed the phrase “better to ask for forgiveness than permission,” which U.S. prosecutors cited during legal proceedings.
He said he adopted the saying after reading books by entrepreneur Richard Branson and only used it internally on a few occasions. However, U.S. prosecutors later used the statement in court to portray him as someone who ignored regulations.
CZ rejected that characterization. He described himself as someone who generally follows rules while thinking outside the box.
He also said the crypto industry lacked clear regulatory guidance in its early years. At the time, Binance viewed itself primarily as a fast-growing technology company rather than a traditional financial institution.
User Protection Was Key to Binance’s Growth
Looking back, CZ said Binance’s success was driven by more than its fast trading engine, strong team, BNB incentives, and affiliate program.
He argued that the exchange maintained its leadership because it consistently put users first, even when doing so reduced short-term profits.
CZ said many decisions cost Binance money but helped build long-term trust. He pointed to examples such as handling blockchain forks in users’ interests and using a significant portion of the company’s treasury to compensate investors affected by regulatory actions in China.
According to CZ, users reward platforms that consistently protect customer funds, even if competitors copy their products or technology. He added that many companies focus too much on short-term profits, while Binance aimed to build lasting trust with its users.
Related: CZ Says Prison Did Not Damage Business Relationships After Binance Exit
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