Country-specific crypto markets a bad idea, CZ says after talks with government

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Binance CEO Changpeng “CZ” Zhao has highlighted the shortcomings of segregated cryptocurrency markets following recent talks with governments from several countries.

The CEO of the global cryptocurrency exchange has become increasingly involved in policy discussions with various governments as Binance continues its global expansion. Binance was recently licensed to operate in Spain, Italy and Dubai to add to a global list of countries where it now operates.

As CZ continues to consult with government organizations as a proponent of cryptocurrencies, he emphasized the need to maintain high liquidity in cryptocurrency markets after several countries called for segregated markets and order books in their jurisdictions.

Since Binance operates in more than 180 countries, CZ stressed that the breakdown of these markets would make it much easier for traders to switch markets, leading to further volatility. Binance CEO also argued that arbitrage traders who typically divide cryptocurrency prices across different exchanges or order books were not as efficient as a single order book:

“Great liquidity also provides better pricing for users. Tighter spread. Lower slip. This is also a very important form of consumer protection. Real financial 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 legal guidelines and regulatory policies for cryptocurrencies in the country.

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Turkey’s finance and finance minister also held a virtual meeting with Binance’s 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 French President Emmanuel Macron in November 2021 to discuss how to boost Web3 and blockchain technology development 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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