Binance CEO Changpeng “CZ” Zhao has highlighted the shortcomings of the separate cryptocurrency markets after recent talks with governments from various countries.
The CEO of a global cryptocurrency exchange is becoming increasingly involved in policy discussions with various governments as Binance continues its global expansion. Binance recently obtained a license to operate in Spain, Italy, and Dubai to add to the global list of countries in which it now operates.
As Czechoslovakia continues to consult with government organizations as a supporter of cryptocurrency, he highlighted the need to maintain significant liquidity in the cryptocurrency markets after different countries called for separate markets and order books in its jurisdiction.
With Binance operating in more than 180 countries, CZ stressed that segmenting these markets will make it easier for traders to swing the markets which could lead to more volatility. The Binance CEO also argued that arbitrage traders who typically balance cryptocurrency prices across different exchanges or order books were not as efficient as a single order book:
Great liquidity also provides better prices for users. narrower spread. Low slip price. This is also a very important form of consumer protection. Real financial impact on users.”
Binance works with a number of countries around the world in partnerships aimed at developing cryptocurrency infrastructure and education. Czechoslovakia met with the President of Kazakhstan in May 2022 to sign an agreement to help develop legislative guidelines and regulatory policies for cryptocurrency in the country.
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The Turkish Treasury and Finance Minister also held a virtual meeting with the CEO of Binance in July 2022 where the country played the role of host for Blockchain Economy Istanbul. The company launched its first customer service center in Turkey in April 2022, two years after starting operations in the country.
Czechoslovakia also met with French President Emmanuel Macron in November 2021 to hold discussions on leading the development of Web3 and blockchain technology in the country. Binance pledged $115 million to the initiative at the time. Binance then obtained regulatory approval to operate the exchange in France in May 2022.