Changpeng Zhao stated geo-fencing U.S. users from launch could have prevented later compliance challenges for Binance.
Binance founder Changpeng Zhao said in a May 9, 2026 interview that blocking U.S. users and implementing geo-fencing from the start would have mitigated later regulatory and compliance problems. He noted Binance was a small team of roughly 20 in 2017 with few users, viewing it as a technology platform rather than a financial entity at the time.
Zhao added that earlier investment in KYC and compliance measures could have avoided many subsequent issues. The exchange faced significant regulatory scrutiny in the U.S. and globally in the years following its launch.
The remarks highlight the challenges crypto exchanges encounter in balancing growth with regulatory adherence, particularly in major markets like the U.S.