Who is CZ Binance? (Changpeng Zhao)
Changpeng Zhao, better known as “CZ,” is the founder and CEO of Binance, the world’s largest cryptocurrency exchange by trading volume. Since launching Binance in 2017, CZ has become one of the most influential figures in the crypto industry, overseeing the platform’s explosive growth while also facing regulatory challenges around the world.
CZ was born in China in 1977 and moved with his family to Vancouver, Canada when he was a teenager. He studied computer science at McGill University before getting into software development and financial trading systems. After stints at companies like Bloomberg Tradebook, he founded his own high-frequency trading software company Fusion Systems in 2005.
In 2013, CZ first learned about Bitcoin and became very interested in its underlying blockchain technology. He began investing in various cryptocurrencies and even considered building a crypto trading platform. However, at the time the industry was still in its infancy.
It wasn’t until 2017 that CZ decided conditions were finally ripe to launch a new cryptocurrency exchange with co-founder Yi He. They named the exchange “Binance,” combining the terms “binary” and “finance,” with the goal of making crypto more accessible to the masses.
The timing of Binance’s launch turned out to be impeccable. It coincided with the major crypto boom of 2017, allowing the exchange to quickly gain traction. Key factors driving Binance’s early growth included:
- Competitive trading fees as low as 0.1%
- Fast processing speeds, able to handle 1.4 million transactions per second
- Support for many different altcoins beyond just Bitcoin
- Multilanguage platform available in 15 languages
- Responsive customer service
Within six months, Binance had become the world’s largest crypto exchange as measured by trading volume. Today it has over 120 million users across nearly 200 countries. On a typical day Binance processes $70 billion worth of trades, more than double the volume of Coinbase.
So how exactly did CZ manage to create such a dominant player in the crypto exchange market? Several factors stand out:
Strong Technical Background
As a programmer himself, CZ understood the importance of building a high-performance trading engine capable of supporting a large user base. That technical expertise allowed Binance to handle major spikes in traffic without crashing.
Binance’s trading platform is also known for its speed, capable of processing 1.4 million transactions per second. This results in fast execution times for traders.
Aggressive Listing of New Tokens
Binance stood apart from rivals in its early days by aggressively adding new tokens to its platform. CZ wanted to provide traders access to any and all cryptocurrencies worth trading. This remains a differentiating factor today, as Binance lists over 500 different crypto tokens.
Commitment to Security
CZ has spoken extensively about the importance of top-notch security measures to prevent hacks and fraud. Binance implements mandatory two-factor authentication, address whitelisting, and other tools to help protect customer funds. A Secure Asset Fund for Users (SAFU) is also available as an emergency insurance reserve.
Embracing Regulatory Oversight
Rather than shy away from regulation, CZ believes working proactively with government agencies will benefit both Binance and the broader crypto industry. The company employs over 200 compliance specialists and has established legally registered entities around the world to put Binance in better compliance with existing laws.
“I am pro-regulation…We want to grow the industry in a healthy way and that requires working with regulators rather than avoiding them,” CZ told Forbes.
At the same time, Binance has been targeted by regulatory bodies for alleged violations of securities laws. The U.S. Department of Justice and IRS are reportedly investigating the exchange for criminal wrongdoings, including insider trading and market manipulation. Binance is also facing money laundering probes in the U.S. and other countries. The company claims that it cooperates fully with regulatory agencies and so far no official charges have been filed.
Beyond exchange operations, CZ stays busy spearheading a number of initiatives aimed at advancing cryptocurrency adoption:
Binance Academy – A free educational platform covering everything from intro guides to blockchain to trading tips from professional crypto traders.
Binance Research – A division providing institutional-grade research reports on different crypto assets and economic/blockchain trends.
Binance Charity Foundation – A not-for-profit charity organization supporting humanitarian causes worldwide, where donations go directly to end recipients without any passed through costs.
Binance NFT – A marketplace for artists, creators, crypto enthusiasts, NFT collectors and creative fans to create, buy and sell NFTs all in one community.
Binance Launchpad – A token launch platform helping blockchain projects raise funding and increase their reach across the crypto ecosystem.
CZ also uses his personal social media channels to promote cryptocurrency more broadly. The Binance CEO is active on Twitter with over 7 million followers. He hosts “Ask Me Anything” sessions and shares the latest Binance news updates. This direct engagement helps forge lasting connections between CZ and crypto communities.
What does the future hold for Binance and its high-profile founder? As the world’s largest crypto trading platform, Binance is positioned to grow in several key directions:
New Product Offerings – Binance continues expanding beyond core exchange services to capture more market share. Recent additions include NFT marketplace Binance NFT, Binance Earn for lending crypto to generate interest, gift card trading via Binance Gift Card, and even virtual reality experiences via Binance Home.
Decentralized Exchange – To complement its existing centralized exchange, Binance plans to evolve into a fully decentralized autonomous organization governed by the community. This will help resolve regulatory issues in certain jurisdictions.
U.S. Exchange – Binance limits services in the United States and instead directs American traders to use Binance.US. Expanding the separate U.S. exchange will unlock new growth opportunities in one of the world’s largest crypto trading countries.
As Binance pushes forward into new frontiers, it seems highly likely CZ will continue playing an integral role given his proven track record and intimate familiarity with the company’s operations spanning all departments. Look for the charismatic crypto CEO to pop up at major industry conferences and throughout the media for years to come.
