Wei Zhou, CEO of Coins

“Coins Aims to Make Mauritius a Leading Destination for Virtual Assets”

As virtual assets and blockchain technology continue to reshape the global financial landscape, industry leaders are seeking innovative ways to navigate this dynamic environment. Wei Zhou, the CEO of Coins, is at the forefront of these developments. Having previously served as the CFO of Binance, one of the world’s largest cryptocurrency exchanges, Wei Zhou brings a wealth of experience and insight to his current role. In this exclusive interview with BIZWEEK, he shares his thoughts on his vision for the future of digital assets, Coins’ strategic expansion into Mauritius, and the broader impact of blockchain technology on the global economy. 

You have had an impressive career trajectory from CFO of Binance to CEO of Coins.ph. What motivated you to make this transition, and what opportunities did you see in Coins?

My journey in the crypto world has always been driven by a desire to be at the forefront of transformative changes. At Binance, I spent over three years overseeing global regulation and investments, which gave me a deep understanding of the evolving regulatory landscape and the potential of digital assets. However, I saw a unique opportunity with Coins.ph. Unlike other platforms that primarily focus on trading, Coins has licenses not just in digital asset trading, but also in payments and remittances. This broader scope allows us to provide a more comprehensive suite of financial services. 

I saw the future of digital assets moving towards a more regulated form, and Coins was perfectly positioned to capitalize on this shift. This led me to form a consortium, in partnership with a private equity fund, to acquire Coins.ph. I also invested my own money into the venture. Following regulatory approval in the second quarter of 2022, I took over as CEO. It’s been a thrilling journey, and I believe we are just at the beginning of what we can achieve.

From your perspective, how do you define virtual assets, and what role do they currently play in the global financial ecosystem?

Virtual assets are essentially any form of digital representation of value issued on a blockchain. These assets can represent real-world items like real estate, commodities like gold or oil, or digital entities such as Non-Fungible Tokens (NFTs). They can also serve as tokens that facilitate transactions within a specific blockchain ecosystem, such as Ethereum or Solana. 

The role of virtual assets in the global financial system is expanding rapidly. Initially, they were perceived as niche products for speculative trading. However, we are now witnessing their adoption by mainstream financial institutions as tools for investment, payments, and value storage. For example, Bitcoin is increasingly viewed as ‘digital gold,’ and stablecoins are becoming a preferred medium for cross-border transactions. I believe this trend will continue to accelerate as more use cases emerge, integrating virtual assets into the fabric of everyday economic activities.

What major trends are currently shaping the virtual asset space?

There are several significant trends shaping the virtual asset space today. First, we see increased adoption by traditional financial institutions. This shift is moving digital assets from the fringes to the mainstream. Institutions are investing in Bitcoin as a store of value, and utilizing stablecoins for cross-border payments. This is a substantial change, as evidenced by the fact that the transaction volume of US dollar stablecoins has now surpassed that of traditional networks like Visa. 

Secondly, we are witnessing more real-world use cases, particularly in developing markets. In the Philippines, for example, there is a growing trend of ‘play-to-earn’ games that utilize digital assets. Players earn tokens or NFTs within the game, which can then be traded or sold outside the game, creating new economic opportunities. 

Third, there is a move towards decentralized physical infrastructure. This concept leverages blockchain technology to create networks that build real-world infrastructure through community-driven efforts. A recent example is a token project we listed that allows users to map the world by installing a device in their vehicles. As they contribute to the mapping, they earn tokens that can be traded or held for value. This innovative approach combines crypto, technology and community efforts to develop real-world solutions.

The transaction volume of US dollar stablecoins has now surpassed that of traditional networks like Visa

Coins recently received a Virtual Asset Service Provider license in Mauritius. What strategic importance does Mauritius hold for Coins, and how do you plan to leverage it?

Mauritius is a vital jurisdiction for us, particularly from a licensing perspective. The island is strategically positioned as a financial hub that bridges Africa, Europe, Asia, and the Americas. It has a strong regulatory framework, a stable political environment, and a well-established financial services sector. All these factors make Mauritius an ideal location for us to expand our operations.

Our strategy is to use Mauritius as a gateway to the African market, particularly Sub-Saharan Africa. We see tremendous growth potential in this region, and we believe our experience in the Philippines, another developing market, positions us well to replicate that success. Our focus will be on two main areas: financial inclusion and financial empowerment. By providing digital wallets, both in fiat and crypto, we can significantly increase financial inclusion. For example, in the Philippines, we saw digital wallet adoption jump from 40% to 80% within just four to five years. 

The second area is financial empowerment. Digital assets offer a 24/7 accessible asset class that can serve both as an investment and a savings tool. This accessibility allows individuals to move up the financial ladder, owning and managing their assets for the first time. Mauritius will serve as our launchpad to build these services across Africa.

How does Mauritius compare to other global hubs like Singapore or Switzerland for companies dealing with virtual assets?

Singapore and Switzerland have certainly had a head start in the digital assets space. Both countries have well-established regulatory frameworks and vibrant communities of developers and innovators. Mauritius, on the other hand, is still building its ecosystem. However, it has some unique advantages. The island offers a safe and stable environment, with bilingual capabilities in English and French, and a relatively low cost of living, making it an attractive destination for professionals and businesses alike.

What Mauritius needs now is a more active developers’ community and greater engagement with blockchain and crypto projects. We believe Mauritius could serve as a hub for Africa, and even India, much like Singapore and Switzerland have done for their respective regions. Our goal is to attract projects and developers to establish a strong foundation in Mauritius, positioning the island as a leading destination for virtual assets.

What are the next big milestones for Coins, both globally, and in Mauritius?

One of our significant upcoming milestones is the launch of our global platform, Coins XYZ, in November. This platform will be regulated under the jurisdiction of Mauritius, and we plan to introduce several innovative products that will set us apart in the market. 

We have also received an Initial Token Advisory license in Mauritius, which allows us to support high-quality projects in launching their tokens in a regulated environment. This is crucial because one of the primary use cases for blockchain and virtual assets is fundraising. We aim to attract and support innovative projects from the region, and provide them access to a global investor base.

What advice would you give to business leaders and investors looking to engage with virtual assets and blockchain technology?

The best way to learn about virtual assets is by actively engaging with them. You can read books or watch videos, but nothing replaces the experience of downloading a digital wallet and making transactions. For me, my first experience using Binance and cryptocurrencies was transformative. It was incredible to see how easily I could transfer value globally, without the friction of traditional banking systems. 

Traditional financial systems are often cumbersome, with extensive paperwork and fees, even for simple transactions. Cryptocurrencies remove many of these barriers, allowing for quicker, cheaper, and more transparent transactions. If you find these limitations frustrating, then it’s worth exploring the world of crypto. Start small, experiment, and you’ll quickly see the potential.

There is a growing trend of “play-to-earn” games that utilize digital assets

Stablecoins have been a hot topic in the fintech world. How do you see them supporting investments, particularly in markets like Mauritius?

Stablecoins provide a compelling alternative to traditional financial rails for moving money, both domestically and internationally. Currently, if you want to send money across borders, you often have to navigate complex and costly banking systems. Stablecoins can streamline this process by enabling direct, peer-to-peer transactions, reducing costs, and increasing speed. 

However, the challenge in markets like Mauritius is creating a stablecoin that can be easily redeemed at local banks. If we can solve this, it would drive broader adoption and trust. I believe we could see this happening within the next 12 to 18 months.

What steps should Mauritius take to enhance its position as a hub for virtual assets?

Mauritius needs to be more open-minded and proactive in embracing new technologies. Enhancing STEM education and fostering a culture of innovation are crucial steps. Additionally, it’s essential to create a regulatory environment that supports local residents in legally buying and selling cryptocurrencies. 

We also need to collaborate more with educational institutions and industry stakeholders to build awareness and understanding of digital assets. If Mauritius can implement these changes, it has the potential to become a leading hub for virtual assets in the region.