Binance co-founder Changpeng Zhao publicly supported a proposal for crypto license passporting across the Association of Southeast Asian Nations during a fireside discussion on July 28 at the ASEAN Tech Summit Manila 2026. The session, titled “One ASEAN, One Digital Economy,” featured Zhao alongside Lito Villanueva, founding chair of FinTech Alliance PH, who raised the idea.

Under the concept, a cryptocurrency firm already authorized in one ASEAN member state could pursue a streamlined approval process when expanding into another, rather than submitting an entirely new application from the start. Host regulators would retain authority to review applicants and apply local conditions where necessary.

Zhao argued that coordinating authorization across borders is primarily a matter of political alignment rather than technical difficulty. He said enabling more licensed platforms to compete regionally could improve service quality and reduce costs for consumers while cutting operational expenses for companies.

Fragmented Rules Create Barriers

ASEAN member states currently regulate digital assets through separate national systems. Companies seeking a regional presence must navigate distinct licensing requirements, capital standards, cybersecurity rules, custody obligations, disclosure rules and anti-money laundering checks in each market. This duplication raises costs and can disadvantage smaller operators relative to larger firms.

The region has a population of roughly 700 million and includes economies such as Indonesia, Singapore, Malaysia, Thailand, the Philippines and Vietnam. Many of these jurisdictions have advanced blockchain and digital asset rules in recent years, yet the lack of mutual recognition continues to complicate cross-border activity.

A concrete illustration appears in the Philippines. A Binance-linked firm, BlockShoals Technologies, obtained clearance from the Securities and Exchange Commission for sandbox testing using Binance infrastructure. That approval did not eliminate the need for a separate license from the Bangko Sentral ng Pilipinas for certain payment and transaction services, requiring two distinct regulatory processes for related activities.

Existing Regional Precedents

ASEAN regulators have already implemented limited forms of cross-border recognition in traditional finance. The ASEAN Capital Markets Forum’s Collective Investment Schemes Framework permits a fund authorized in one participating jurisdiction to seek streamlined approval in others. Malaysia, Singapore and Thailand launched the arrangement in 2014, with the Philippines joining in 2021.

The forum also operates the ACMF Pass under its Professional Mobility Framework. Eligible investment advisers licensed in one participating market can obtain fast-track registration to provide services in another without securing a full new license. These mechanisms remain subject to host-country requirements and do not extend to crypto exchanges or stablecoin providers.

A broader international parallel exists in the European Union. Under the Markets in Crypto-Assets Regulation, an authorized crypto-asset service provider can offer services across member states after notifying its home regulator of the relevant countries and activities. The system rests on a shared legal framework and common standards that ASEAN does not currently possess for digital assets.

Status of the Proposal

No ASEAN regulator or regional body has announced a formal crypto passporting proposal, consultation process or timetable. Zhao’s remarks represent an endorsement of the concept rather than an adopted policy. Differences in national economic priorities and regulatory approaches remain significant obstacles to any unified approach.

ASEAN’s Digital Economy Framework Agreement, whose negotiations concluded in late May 2026, is scheduled for signing at the 49th ASEAN Summit in November 2026. Official descriptions address digital payments, data governance and cybersecurity, but available materials do not confirm inclusion of crypto license portability.

Zhao’s appearance marked his first public event in the Philippines. The two-day summit drew more than 4,000 delegates from over 30 countries and was organized by FinTech Alliance PH. Supporters of the passporting idea contend it could lower barriers for exchanges, custodians and stablecoin services while preserving national oversight. Implementation would still require agreement on minimum standards, supervisory responsibilities and information-sharing arrangements among member states.