Binance CEO Changpeng ‘CZ’ Zhao has highlighted the shortcomings of segregated cryptocurrency markets after recent talks with governments from different countries.
The global cryptocurrency exchange’s CEO has become increasingly involved in policy discussions with various governments as Binance continues its global expansion. Binance most recently obtained a license to operate in Spain, Italy and Dubai to add to a global list of countries it now operates in.
As CZ continues to consult with government organizations as a proponent of cryptocurrencies, he’s highlighted the need to maintain large liquidity in cryptocurrency markets after various countries called for segregated markets and order books in their jurisdiction.
From our interactions, some countries want a segregated orderbook (liquidity). This is a BAD IDEA for a number of reasons.
Large liquidity is one of the best Consumer Protection mechanisms. It protects against market manipulation, volatility, and reduces liquidations.
— CZ Binance (@cz_binance) July 31, 2022
With Binance operating in over 180 countries, CZ stressed that the division of these markets would make it far easier for traders to swing markets which would lead to further volatility. The Binance CEO also argued that arbitrage traders that typically balance cryptocurrency prices across different exchanges or order books were not as efficient as a single order book:
“Large liquidity also offers better prices for users. Tighter spread. Lower slippage. This is also a very important form of Consumer Protection. Real financial impact for users.”
Binance is working 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 assist in developing legislative guidelines and regulatory policies for cryptocurrencies in the country.
The Turkish Minister of Treasury and Finance also held a virtual meeting with the Binance CEO in July 2022 as the country played host to 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 prime minister Emmanuel Macro in November 2021 to hold discussions around driving the development of the Web3 and blockchain technology in the country. Binance pledged $115 million to the initiative at the time. Binance then gained regulatory approval to operate its exchange in France in May 2022.
This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.
#Bitcoin #Crypto #Cryptocurrency