Country-specific Crypto Markets Must Not Happen, CZ Says

Country-specific crypto markets will make those nation markets more volatile and harmful to many investors not willing to or not being able to swing those segmented markets.

Changpeng “CZ” Zhao, CEO of Binance, has emphasized the value of market liquidity in response to requests for segregated order books from a number of nations.

Changpeng “CZ” Zhao, the CEO of Binance, has drawn attention to the drawbacks of divided cryptocurrency markets following recent discussions with various governments.

As Binance continues its international expansion, its CEO has participated more and more in policy discussions with various governments. The most recent countries that Binance has been granted a license to do business in are Spain, Italy, and Dubai.

After several nations called for segregated markets and order books in their jurisdiction, CZ—a proponent of cryptocurrencies—highlighted the need to maintain significant liquidity in cryptocurrency markets in his ongoing consultations with government organizations.

CZ emphasized that because Binance operates in more than 180 nations, the division of these markets would make it much simpler for traders to swing markets, which would increase volatility and so country-specific crypto markets must not happen as they will become more volatile. The CEO of Binance further argued that a single order book was more effective than arbitrage traders, who typically balance cryptocurrency prices across various exchanges or order books:

“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 collaborating with a number of nations around the world to build cryptocurrency infrastructure and promote education. In May 2022, CZ and the president of Kazakhstan met to sign a contract in which CZ agreed to help Kazakhstan develop regulatory and legislative frameworks for cryptocurrencies.

A virtual meeting between the CEO of Binance and the Turkish Minister of Treasury and Finance took place in July 2022, when Turkey was hosting Blockchain Economy Istanbul. In April 2022, two years after beginning operations there, the company opened its first customer service location in Turkey.

In November 2021, CZ also had a meeting with Emmanuel Macron, the president of France, to discuss how to advance blockchain and Web3 technology in that nation. At the time, Binance committed $115 million to the project. In May 2022, Binance received regulatory approval to run its exchange in France.

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