Binance co-founder Changpeng Zhao has endorsed a system of regulatory passporting for cryptocurrency licenses across ASEAN, under which firms approved in one member state could enter others through a simplified process rather than submitting full new applications. He spoke on Tuesday during a fireside discussion at the ASEAN Tech Summit in Manila.

Zhao supported a proposal for license portability raised by the founding chair of FinTech Alliance PH. Under such an arrangement regulators would retain the ability to examine applicants but would not demand an entirely new licensing procedure. A regional framework could lower compliance expenses, promote competition and ease the operation of crypto and stablecoin services across markets that currently regulate digital assets independently.

Cross-border coordination was described as primarily a political challenge rather than a technical one. Greater competition among licensed platforms could improve service quality and reduce costs for users.

ASEAN already operates limited mutual-recognition arrangements in other areas of finance. The ASEAN Capital Markets Forum’s Collective Investment Schemes Framework permits a fund authorized in its home jurisdiction to be offered in participating host markets through a streamlined authorization process. The arrangement began in Malaysia, Singapore and Thailand in 2014, with the Philippines joining in 2021. A separate Professional Mobility Framework allows eligible investment advisers licensed in one jurisdiction to obtain fast-track registration in another without securing a fresh license.

These mechanisms are narrower in scope than a full crypto passport and remain subject to host-market conditions. They demonstrate prior use of mutual recognition to advance regional integration. In the European Union, the Markets in Crypto-Assets Regulation grants authorized crypto-asset service providers the right to operate across member states after notifying their home regulator of the intended countries and services.

Differences in national policies and regulatory approaches complicate alignment more than the construction of shared technical infrastructure. Firms already licensed in one ASEAN market should nevertheless face a lighter application process when expanding into another.