Changpeng Zhao (CZ), founder of Binance, the world's largest cryptocurrency exchange, says his biggest mistake had nothing to do with technology. Speaking on the Talking Tokens podcast in a July 16 interview, Zhao explained that he underestimated the importance of law, compliance, and politics when building Binance. If he could return to 2017, he would tell his younger self to learn the rules first.

"Just a Tech Guy"

Nine years after Binance launched, Zhao reflected on what advice he would give his 2017 self. He started the exchange in 2017 and it rose to the top of the market within months. His answer centered on the legal side of the business.

"Before like 2017, I was just a tech guy. I was focused on building a better product and protect the users, but I think I misjudged the importance of the legal aspects of it, which is a weak area for me."

The Cost of Not Knowing the Law

Zhao understood product development but lacked knowledge of international law—a gap that became increasingly problematic as Binance expanded globally.

"I wasn't very knowledgeable on international laws and how different countries apply laws. Some US laws apply globally. Some. And they also have a very long look back period."

That knowledge gap proved costly. Zhao's 2023 guilty plea forced Binance to pay $4.3 billion in penalties, ranking among the largest corporate fines in US history. The settlement resolved charges from multiple US agencies involving failures in anti-money-laundering controls and violations of international sanctions programs. Zhao stepped down as CEO, paid a $50 million personal fine, and served four months in prison.

Wishing He Had Moved Faster

Zhao also expressed a second regret: moving too slowly. He advised founders to ship products early and learn from real user feedback.

"It is much better to push a product out early and then have market feedback."

He cited Binance's own futures launch as an example: "Binance launched futures two years into the journey. If I was to do it again, I would probably launch that much earlier."

Zhao emphasized that this is practical advice, not merely hindsight. He now urges other founders to take legal compliance seriously and has even warned Hyperliquid that it needs good lawyers. His caution reflects a broader industry reality: as decentralized trading platforms grow, they increasingly encounter regulatory questions that centralized exchanges like Binance already navigated—often at great cost.

From Prison to Policy Advisor

Zhao's own legal case concluded in 2025 with a presidential pardon, approximately one year after his release from prison. Today, he advises governments on crypto policy—the very field he once overlooked. It marks a notable reversal for a founder who built the world's largest exchange by prioritizing speed over legal infrastructure, and who now champions the regulatory expertise he wishes he had from the start.

CZ: If I Could Go Back, I'd Learn More About Law, Compliance and Politics

Binance founder Changpeng Zhao (CZ) @cz_binance said in a July 16 interview with Talking Tokens Podcast that if he could return to 2017, he would tell his younger self to learn more about law,… pic.twitter.com/6TJXKEsy0o

— Wu Blockchain (@WuBlockchain) July 23, 2026