CZ Argues That Country-Specific Crypto Markets Are a Poor Idea

Last updated Oct 17, 2022

After recent conversations with the governments of several nations, the CEO of Binance, Changpeng “CZ” Zhao, pointed out the drawbacks of having separate cryptocurrency markets.

As Binance continues to expand its operations around the world, the CEO of the global cryptocurrency exchange has been more involved in having policy-related conversations with a variety of nations. Binance has recently been granted permission to conduct business in Spain, Italy, and Dubai, bringing the total number of countries in which it is currently active to a global total.

As CZ continues to engage with government groups as a proponent of cryptocurrencies, he has emphasized the necessity to preserve strong liquidity in the cryptocurrency markets. This comes after several governments have called for segregated markets and order books inside their jurisdiction.

“Based on the conversations we’ve had, it seems that certain countries prefer separate orderbooks (liquidity). This is a TERRIBLE PLAN for a variety of different reasons.
A substantial amount of liquid assets is among the most effective consumer protection methods. It safeguards against market manipulation and volatility, and it cuts down on liquidations as well.”

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.

1/5

— CZ 🔶 Binance (@cz_binance) July 31, 2022

“Users can also benefit from better prices”

CZ emphasized that the split of these markets would make it much simpler for traders to swing markets, leading to further volatility. Binance currently operates in over 180 countries. In addition to this, the CEO of Binance said that arbitrage traders, who normally attempt to balance cryptocurrency prices across various exchanges or order books, were not as efficient as a single order book:

“Users can also benefit from better prices thanks to large liquidity. Reduced margins of error. Lower slippage. This is another very significant method of protecting the consumer’s rights. The users experienced a real financial impact.”

Binance is collaborating with a variety of nations all around the world to establish collaborations that will foster the growth of cryptocurrency infrastructure and educational opportunities. In May of 2022, CZ signed an agreement with the President of Kazakhstan to assist in developing legislative guidelines and regulatory regulations for cryptocurrencies in the nation. This meeting took place in Kazakhstan.

At the same time, when Turkey was serving as the host nation for Blockchain Economy Istanbul in July 2022, the Turkish Minister of Treasury and Finance participated in a virtual meeting with the CEO of Binance. In April 2022, exactly two years after beginning operations in the country for the first time, the company opened its first customer service center in Turkey.

CZ also met with Emmanuel Macron, the President of France, in November 2021 to talk about accelerating the development of Web3 and blockchain technologies in the country. At that time, Binance committed $115 million to support the program. After that, in May of 2022, Binance was granted regulatory authority to begin operating its exchange in France.