In a recent interview with Cointelegraph, Binance CEO Changpeng Zhao, also known as CZ, shared his experience on how to establish a global cryptomoney exchange and described four key criteria to follow to ensure success.
The „global mindset“ is essential
CZ stressed that having a „global mindset“ is imperative, as crypto currency exchanges that claim to be „global“ often tend to focus on a single particular region, greatly limiting their international presence.
Crypto currency exchanges talk as Bitcoin Loophole takes first place in CoinMarketCap. „First, I’d say you need a global mindset. Many crypto currency exchanges claim to be a global exchange, but if you look closely, they focus on one region, usually where most of their equipment is. Their products are only available in one or two languages, their customer service is only available in one or two languages and they only organize offline events in their own region. As a result, most of its users are also from that region.
Achieving „a truly global mindset“ is a difficult task in itself, CZ continued:
„If the founders have not lived and worked in multiple places in the world, it is very difficult for them to have a global vision. If you have a global mindset, the rest are executions. The execution is also very difficult.
Four steps to success
In addition, Zhao established four key elements for cryptology companies to focus on in their effort to become global.
Binance allegedly provides trading services in China despite the ban on exchanges in the country
The first is to have a sustainable business model. „Business owners should evaluate whether they have a successful business model with a clear path to profitability before they increase their size rapidly or scale up quickly to the world,“ CZ said.
The other important factor is knowing the preferences of the public, which can vary greatly from region to region, and the ability to adapt services accordingly:
„When a company serves multiple markets, it must ensure that the product offering is tailored to local markets and still provide value or incentives for users to stay in business. It’s the same thing for a cryptomoney exchange. We must adapt to change quickly, continue to build and present innovative products to meet the diverse and growing demands of local markets.
According to CZ, being in touch with regulators and recognizing responsibility to customers is also key.
CoinMarketCap presents another algorithm update… and Binance remains in first place
„A global crypto currency exchange should work closely with local governments or regulatory agencies so that local users can trade on the platform without concern. A centralized exchange provides custody services for a large amount of funds and houses users‘ personal data, so it must continue to optimize its technology and security systems to keep users‘ funds and data safe.
Finally, CZ pointed out that the crypto currency exchange industry is still in its infancy, especially compared to traditional financial markets. „There is approximately one user of crypto-currency for every 1,000 people,“ he noted, adding that the adoption rate remains very low.
Therefore, according to CZ, the main players in the industry „should take responsibility for building the industry, raising industry standards, driving the mass adoption of cryptomoney and growing the cryptomoney industry in general.
CZ explained that it is not a universal plan for crypto currency exchanges to aim for a global presence, as new challenges tend to emerge as the business grows. In his view, the ability to „constantly adapt to change, put users first and ensure profitability“ will help businesses to prosper in the long term.