Country-specific crypto markets a bad idea, CZ says after gov’t talks

After recent talks with different governments, Changpeng Zhao (Binance CEO) has pointed out the flaws of segregated cryptocurrency markets.

As Binance expands globally, its CEO has been more involved in policy discussions and negotiations with different governments. Binance recently received a license in Spain, Italy, and Dubai to expand its global reach.

CZ is still consulting with government agencies as a proponent for cryptocurrencies. He’s stressed the importance of maintaining large liquidity in cryptocurrency markets, after several countries demanded segregated markets or order books.

We have learned that some countries desire segregated orderbooks (liquidity) based on our interactions. This is a bad idea for many reasons. One of the most effective Consumer Protection mechanisms is large liquidity. It reduces market volatility and protects against market manipulation. 1/5
CZ Binance (@cz_binance), July 31, 2022

CZ stated that Binance operates in more than 180 countries and that the division would make it easier for traders to trade, which would increase volatility. Binance CEO CZ also stated that arbitrage traders who balance cryptocurrency prices across multiple exchanges or orderbooks are not as efficient than a single orderbook.

Large liquidity means that users can enjoy better prices. Tighter spread. Slippage is lower. This is also an important form of Consumer Protection. Users will see a real financial benefit.”

Binance has partnered with many countries to develop cryptocurrency infrastructure and education. CZ met the President of Kazakhstan in May 2022 in order to sign an agreement for assistance in the development of legislative guidelines and regulatory policies regarding cryptocurrencies in Kazakhstan.

Related: Binance founder CZ says that ‘bad’ crypto projects shouldn’t be bailed.

In July 2022, the Turkish Minister of Treasury & Finance held a virtual meeting in Istanbul with Binance CEO. Two years after its operations began in Turkey, the company opened its first customer service centre in Turkey in April 2022.

CZ also met in November 2021 with Emmanuel Macro, the French prime minister, to discuss the development of Web3 and blockchain technology. Binance donated $115 million at that time. Binance was then granted regulatory approval to open its French exchange in May 2022.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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