Binance CEO Changpeng Zhao shared his secrets of success and identified four factors for the effective expansion of cryptocurrency exchanges around the world.
In an interview, Changpeng Zhao emphasized the need for "global thinking." There are many cryptocurrency platforms claiming to be international platforms. However, if we study their activities in more detail, it turns out that they are focused on one specific region, where most of the team is located.
Such exchanges are available only in one or two languages, technical support knows no more than two languages, and management organizes conferences only in its region. Therefore, it turns out that most users of the exchange are concentrated in one region, and this significantly limits its international presence.
"If the founder(s) have not lived and worked in multiple places in the world, it's very hard for them to have a global view. If you have a global mindset, the rest are execution. Execution is also super hard,"Zhao said.
Zhao called the key factors in his opinion for the successful conduct of the cryptocurrency business:
First, before expanding into other regions, platform owners must develop a sustainable business model with a clear profit plan.
Secondly, you need to know the preferences of the audience, which can vary greatly depending on the region. When entering new territories, exchanges must make sure that their offer is adapted to local markets and carries a certain value to users. Platforms must quickly adapt to change and create innovative products to meet the growing needs of traders.
Thirdly, one of the main factors is close cooperation with local regulatory authorities, so that traders can safely trade on the platform. According to Zhao, centralized exchanges should improve their technology and security system to protect the assets and personal data of users. The head of Binance noted that, compared to traditional financial markets, the crypto industry is still in its infancy, and out of a thousand people, only one uses cryptocurrencies.
Fourth, Zhao invited the leading players in the cryptocurrency market to raise industry standards and stimulate the widespread adoption of cryptocurrencies. However, Zhao urged not to take his words as a "magic pill", with which you can bring cryptocurrency exchanges to the international level. As expansion always arises new problems, but the interests of users should always be put in the first place.
In November, Zhao announced that Binance plans to add support for all 180 fiat currencies in the world. However, it is difficult for the exchange to enter the Chinese market due to tight regulation.