Country-specific crypto markets are a bad idea, says CZ after government talks
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- CZ government talks
- How Country-Specific Crypto Markets Swing Markets
CZ government talks
Binance CEO Changpeng “CZ” Zhao has highlighted the shortcomings of segregated cryptocurrency markets after recent talks with governments of various countries.
The global cryptocurrency exchange’s CEO has become increasingly involved in political discussions with various authorities as Binance continues its global expansion. Binance was recently granted a license to operate in Spain, Italy and Dubai to add to the global list of countries in which it now operates.
While CZ continues to consult with public organizations as an advocate for cryptocurrencies, he highlighted the need to maintain great liquidity in cryptocurrency markets after various countries called for segregated markets and order books in their jurisdictions.
From our interactions, some countries want a segregated order book (liquidity). This is a BAD IDEA for several reasons.
High liquidity is one of the best consumer protection mechanisms. It protects against market manipulation, volatility and reduces liquidations.
1/5
— CZ Binance (@cz_binance) 31 July 2022
How Country-Specific Crypto Markets Swing Markets
With Binance operating in over 180 countries, CZ emphasized that splitting these markets would make it much easier for traders to swing markets, which would lead to further volatility. The Binance CEO also argued that arbitrage traders, which typically balance cryptocurrency prices across different exchanges or order books, were not as efficient as a single order book:
“High liquidity also means better prices for users. Tighter spread. Lower slippage. This is also a very important form of consumer protection. Real economic impact for users.”
Binance works with a number of countries around the world in partnerships aimed at developing cryptocurrency infrastructure and education. CZ met with the President of Kazakhstan in May 2022 to sign an agreement to help develop legislative guidelines and regulatory guidelines for cryptocurrencies in the country.
Related: ‘Bad’ crypto projects shouldn’t be bailed out, says Binance founder CZ
The Turkish Finance and Finance Minister also held a virtual meeting with the Binance CEO in July 2022 when the country hosted Blockchain Economy Istanbul. The company launched its first customer service center in Turkey in April 2022, two years after starting operations in the country.
CZ also met with French President Emmanuel Macron in November 2021 to hold discussions around the development of Web3 and blockchain technology in the country. Binance pledged $115 million to the initiative at the time. Binance subsequently received regulatory approval to operate its exchange in France in May 2022.
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*This article originally appeared on Cointelegraph.com.
