Country-Specific Crypto Markets Are a Terrible Idea: Binance CEO, Changpeng Zhao
- Binance CEO explains why large market liquidity is vital after recent discussions with several authorities.
Binance CEO, CZ, believes there are several disadvantages to having crypto markets for each country. CZ made this assertion after recent conversations with regulatory leaders in different countries. Binance CEO has been holding meetings with these leaders in a push to expand the Binance global brand.
Based on recent results, this move has been yielding results. In the last three months, Binance has received an operating license to offer its services in Dubai, Italy, and Spain. Many of these nations are open to talks with CZ, given his vocal nature about the crypto industry.
During one of these talks, a few nations suggested that they would like to own a custom crypto market and order book. But CZ opposed the idea. He said the crypto market must have large liquidity. According to the Binance CEO, large liquidity is a simple and effective way to protect customer investments. He added that a market with large liquidity leaves little room for liquidations. It also makes market manipulation and volatility less possible.
Using Binance’s presence in over 180 countries, CZ said traders could easily create volatility in custom markets since they can swing the markets as they choose. He also explained that an order book balances crypto prices across different exchanges more effectively than arbitrage traders. CZ said Large liquidity gives users access to better prices, a tighter spread, and lesser slippage. Since it directly impacts users’ finances, it is an essential mechanism for consumer protection.
Binance Discusses WEB3 and Crypto Infrastructure With Various Authorities
Binance has met with many global leaders to partner with them to achieve two purposes. Notably, the company wants to educate its populace about crypto. Then, the company will help the countries to develop a crypto infrastructure that suits their needs.
In May 2022, Kazakhstan’s president and Binance (through its CEO) signed a multi-year partnership to help the country to develop a suitable crypto regulatory framework. Last month, CZ also met with Turkey’s finance and treasury minister for a similar objective.
The meeting took place during the Istanbul blockchain economy conference. Binance has been offering its services to Turkish residents for the past two years. However, it opened its customer service center only a few months ago. Also, CZ and Emmanuel Macron (France’s president) met in November 2021 to discuss how Binance can contribute to web3 and blockchain tech development for the benefit of french residents. After the meeting, Binance donated $115 million while the french regulator approved an operating license for the exchange two months ago.
Nevertheless, the current crypto winter isn’t showing any signs of slacking off. The weekend’s consolidation didn’t significantly impact the total crypto market cap. The market cap remains at $1.13 trillion even though it is down 1.2 percent.
Hence, it is no wonder that the two leading digital assets (Bitcoin and Ethereum) are down. The former is down 2.27 percent, while the latter is down 1.37 percent in the last 24 hours. Bitcoin currently trades at $27,161.03, while Ethereum trades at $1,900.92.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
