{"id":113844,"date":"2019-09-17T20:09:46","date_gmt":"2019-09-17T20:09:46","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=113844"},"modified":"2020-03-24T07:01:17","modified_gmt":"2020-03-24T07:01:17","slug":"wei-zhou-cfo-binance-we-want-institutions","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/wei-zhou-cfo-binance-we-want-institutions\/","title":{"rendered":"Wei Zhou, CFO of Binance: &#8220;We want the institutions to come in&#8221; [INTERVIEW]"},"content":{"rendered":"<p>A year after becoming top brass at the world\u2019s largest cryptocurrency exchange by trading volume, <a href=\"https:\/\/cryptoslate.com\/companies\/binance\/\">Binance<\/a> CFO <a href=\"https:\/\/cryptoslate.com\/people\/wei-zhou\/\">Wei Zhou<\/a> says his firm wants to \u201cgrow the pie bigger\u201d and opening up an exchange in the U.S. just might be the best way to do it.<\/p>\n<blockquote><p>\u201cI think the underlying theme here is that 99.99% of the world\u2019s money is still in fiat, and the biggest currency within fiat is the U.S. Dollar,\u201d Zhou told CryptoSlate. \u201cSo as we look at the crypto world today, the user base is still very much a subset of a larger world. So it\u2019s really important for us to be able to grow our fiat presence.\u201d<\/p><\/blockquote>\n<p>Zhou\u2019s core responsibility at Binance has been to bolster the firm\u2019s offerings in the fiat-to-crypto market, and it would certainly look like he\u2019s been fulfilling his duties. The Malta-based exchange has launched a spate of fiat-to-crypto platforms since Zhou\u2019s September 2018 appointment, namely in <a href=\"https:\/\/cryptoslate.com\/binance-uganda-now-accepting-deposit-and-withdrawal-of-ugandan-shillings\/\">Uganda<\/a>, <a href=\"https:\/\/cryptoslate.com\/binance-enables-bnb-mainnet-deposits-launches-binance-dex-and-singapore-fiat-bridge\/\">Singapore<\/a>, and <a href=\"https:\/\/cryptoslate.com\/binance-opens-fiat-to-crypto-outpost-to-target-the-uk-and-europe\/\">Jersey<\/a>\u2014which alone services <a href=\"https:\/\/support.binance.je\/hc\/en-us\/articles\/360020941052-Supported-Jurisdictions\">57 countries<\/a> including Canada, the U.K., and most of continental Europe and South America.<\/p>\n<h2>It\u2019s all about the Benjamins<\/h2>\n<p>But according to Zhou, who previously helped lead internet companies to IPO on Wall Street\u2019s top stock exchanges as CFO, the one currency that really matters is the U.S. Dollar.<\/p>\n<p>This detail, he said, explained <a href=\"https:\/\/cryptoslate.com\/people\/changpeng-zhao\/\">CZ\u2019s<\/a> U-turn on deciding to launch an exchange in the U.S. Binance CEO <a href=\"http:\/\/cryptoslate.com\/people\/changpeng-zhao\">Changpeng Zhao<\/a> <a href=\"https:\/\/cryptoslate.com\/binance-ceo-i-dont-understand-why-the-bitcoin-price-isnt-shooting-through-the-roof\/\">stated<\/a> as recently as a year ago that he had little interest in working with U.S. regulators to set up an outpost in their jurisdiction.<\/p>\n<p>Zhou lauded BUSD, the exchange\u2019s <a href=\"https:\/\/cryptoslate.com\/binance-listing-nydfs-approved-busd-stablecoin-next-week\/\">newly launched, regulated USD stablecoin<\/a>, as a step towards improving the accessibility of crypto in the U.S. Ultimately, he said it would be Binance and \u201cthe brand itself\u201d that would \u201chelp to grow the market\u201d there with its soon-to-launch fiat-to-crypto exchange, <a href=\"https:\/\/cryptoslate.com\/companies\/binance-us\/\">Binance.US<\/a> (which Zhou added is on track for its launch in the \u201ccoming weeks,\u201d as per the company\u2019s <a href=\"https:\/\/medium.com\/binance-us\/https-medium-com-binance-us-what-to-expect-from-binance-us-6fc4db71b5c8\">official line<\/a>).<\/p>\n<blockquote><p>\u201c[BUSD is] a big step in terms of enabling fiat-USD as an on-and-off-ramp within the Binance ecosystem, and at the same time it\u2019s really important to expand\u2014physically\u2014the exchange business itself into the United States.\u201d<\/p><\/blockquote>\n<h2>Binance wants to be at the center of crypto<\/h2>\n<p>Binance\u2019s announcement of a U.S. chapter may have been received as nothing more than an attempt by the firm to <a href=\"https:\/\/cryptoslate.com\/binance-usurp-united-states-cryptocurrency-exchanges\/\">head off Coinbase<\/a> and consolidate power in the world\u2019s biggest economy, but Zhou feels more philosophical about what the exchange is trying to do.<\/p>\n<p>The \u201cfundamental thesis\u201d that drives these types of expansion efforts, Zhou explained, is that Bitcoin started its \u201clife cycle\u201d because people had trust in financial institutions\u2014in fact, institutions in general. In such an era of mistrust, Binance would exist to \u201cencourage people in general to take back control of their own money.\u201d Naturally, Binance wants to be an integral part of this process. Zhou stated:<\/p>\n<blockquote><p>\u201cWe want to enable more crypto ownership, and we want Binance to be [new users\u2019] entry point into crypto. Secondly, we want them to trade, or exchange, their crypto with any one of Binance\u2019s services. And the third one is actually a key element of it, we want to see higher ownership of BNB, and we want to see more use cases for BNB around the world.\u201d<\/p><\/blockquote>\n<h2>Breaking through the \u201cinstitutional malaise\u201d<\/h2>\n<p>While Binance arguably went for the \u2018grow first, regulate later\u2019 approach evidently beloved by retail traders globally, it seems the business has reached the stage where jurisdictional compliance is not so much as an existential threat as it is a competitive barrier to entry.<\/p>\n<p>Indeed, Binance is at its core a \u201cretail-driven organization,\u201d in Zhou\u2019s words, but if the name of the game is to \u201cgrow the pie\u201d that is the cryptocurrency market, then the exchange needs to set its sights on the institutions, who he says \u201cfor historical purposes, control all the wealth in the world.\u201d<\/p>\n<blockquote><p>\u201cIf you ask me if we want to attract more trading on Binance, then &#8216;yes' and if that trading is done by &#8216;institutions,' then we\u2019re going to be targeting these customers, these users, because they do have all pretty much all the liquidity and wealth in the world.\u201d<\/p><\/blockquote>\n<p>Institutions may be proving a tougher sell than the retail crowd, however.<\/p>\n<p>Zhou said his firm had struggled with \u201cinstitutional malaise\u201d on at least one occasion, when after a \u201csix-month dance\u201d with one of the big banks on Jersey Island, Binance was rejected by the unnamed firm\u2019s risk committee\u2014this, despite the exchange having \u201cproper KYC, proper AML, everything that there is.\u201d The end result was that Binance wound up being unable to secure a local bank account for its fiat-to-crypto exchange there.<\/p>\n<p>Zhou\u2014left with a bitter taste in his mouth after the Jersey Island affair\u2014said his company wants to see more traditional institutions coming into crypto. When that happens, Binance will be looking to a billion crypto holders and beyond.<\/p>\n<blockquote><p>\u201cRight now we estimate there are anywhere between 50 to 100 million people around the world that own some form of crypto, directly or indirectly, and we want to grow that to a billion. The thing is, how do we grow the pie bigger\u2014that\u2019s the only way for our industry to move forward.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>A year after becoming top brass at the world\u2019s largest cryptocurrency exchange by trading volume, Binance CFO Wei Zhou says his firm wants to \u201cgrow the pie bigger\u201d and opening up an exchange in the U.S. just might be the best way to do it. \u201cI think the underlying theme here is that 99.99% of [&hellip;]<\/p>\n","protected":false},"author":175,"featured_media":113861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10085,60209,29],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wei Zhou, CFO of Binance: &quot;We want the institutions to come in&quot; [INTERVIEW]<\/title>\n<meta name=\"description\" content=\"Binance CFO Wei Zhou says his firm wants to \u201cgrow the pie bigger\u201d and opening up an exchange in the U.S. just might be the best way to do it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/wei-zhou-cfo-binance-we-want-institutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wei Zhou, CFO of Binance: &quot;We want the institutions to come in&quot;\" \/>\n<meta property=\"og:description\" content=\"Binance CFO Wei Zhou says his firm wants to \u201cgrow the pie bigger\u201d and opening up an exchange in the U.S. just might be the best way to do it.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/wei-zhou-cfo-binance-we-want-institutions\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-17T20:09:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-24T07:01:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/09\/binance-city-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonnie Emsley\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Wei Zhou, CFO of Binance: &quot;We want the institutions to come in&quot; [INTERVIEW]\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonnie Emsley\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/wei-zhou-cfo-binance-we-want-institutions\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/wei-zhou-cfo-binance-we-want-institutions\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#person\",\"name\":\"Jonnie Emsley\",\"url\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"caption\":\"Jonnie Emsley\"},\"jobTitle\":\"Contributor\",\"description\":\"Jonnie is a writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. 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