Binance chief reveals values and principles for running his business

Binance CEO Changpeng Zhao revealed the values and principles by which he conducts business, makes decisions, and runs day-to-day affairs at the world’s largest crypto exchange by trading volume.

Binance CEO Changpeng Zhao / Photo credit: Binance

Because Zhao believes in transparency, he shared his thinking and approach to serve as an internal guide for company as it navigates the challenges of the crypto winter.

The principles were divided into 15 broad categories including general principles, decision-making framework, business deals, hiring, team and organization, among others.

Zhao advocates a passive strategy for business development, preferring to work with firms that come to Binance rather than chase partnerships since it’s a waste of time to convert people to crypto. He also applies this approach to countries, saying he doesn’t visit governments that are not receptive to crypto.

Binance’s entry into new markets has sometimes raised controversy. For instance, it was fined 3.325 million euros (US$3.4 million) by De Nederlandsche Bank for operating without relevant registration in the Netherlands.

Zhao also thinks that for business deals, companies should be willing to say “no” early on to avoid useless partnership discussions. For contracts, he recommends avoiding exclusivity and adding termination and limited liability clauses.

The CEO’s focus on saving time extends to communication, encouraging emails over meetings. If meetings are unavoidable, he’d like to keep them to fewer than 10 people.

Zhao also regards introductory meetings a waste of time. “It may offend some people. But my goal is not to be friends with everyone, it is to get shit done,” he said.

On hiring and running a team, Zhao warns against bringing on board people who are fixated on salaries, compensation, or titles.

He also encouraged shuffling teams often and working with a measure of “controlled chaos,” saying a company that is overly structured tends to be bureaucratic and unable to adapt quickly. He also supports internal competition and the “bottom out” principle, where low performers are dismissed.

See also: Org Chart: A closer look at the people who run Binance

Zhao also noted several popular books that informed his principles, like Simon Sinek’s Infinite Game, Erin Meyer’s The Culture Map, and William Zinsser’s On Writing Well.

Below is Zhao’s published set of principles in full.