Binance co-founder Changpeng Zhao is calling on Southeast Asian regulators to adopt a crypto license passporting system — a framework that would let a company approved in one ASEAN country operate across the bloc without reapplying in each jurisdiction. The proposal, which CZ outlined this week, aims to reduce the regulatory burden on exchanges and other crypto firms while encouraging competition in a region where digital asset adoption is growing fast.
What passporting would mean
Under the current setup, a crypto exchange that gets licensed in Singapore still needs separate approvals in Thailand, Indonesia, the Philippines, and elsewhere. Each process takes months and costs millions. Passporting would treat a license from one member state as valid across all participating ASEAN countries — similar to how the European Union's MiFID passport works for traditional finance.
CZ argued that the approach would lower barriers for smaller players and make the region more attractive to international firms. He didn't specify a timeline or which ASEAN regulators might be open to the idea.
Why now
The push comes as several ASEAN countries are moving to formalize crypto rules. Thailand and Singapore already have licensing regimes. Vietnam and Indonesia are drafting theirs. A passporting system could prevent a patchwork of national standards that would raise costs and slow innovation.
But the proposal also faces hurdles. ASEAN operates on consensus, and member states have different levels of crypto adoption and regulatory maturity. Some governments may be reluctant to cede control over who gets to operate in their market.
No formal proposal has been tabled yet. CZ's comments are likely aimed at starting a conversation ahead of the next ASEAN finance ministers' meeting later this year. Whether the bloc moves toward passporting or sticks with bilateral deals will depend on how much political will exists to harmonize rules across a diverse region.
