Country-specific crypto markets a bad idea, CZ says after gov't talks

cointelegraph.com:

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.1/5

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:

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.

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