In his remarks at the DCBlockchain Summit in Washington DC, Changpeng Zhao highlighted the lack of competition and high transaction fees in the US cryptocurrency market.
According to Zhao, this situation limits liquidity and causes U.S. investors to trade at worse prices compared to global markets.
Mr. Zhao pointed out that US crypto policy has recently undergone major changes as entrepreneurs who previously migrated overseas are starting to return to the country. CZ argued that the US has significant advantages with its Silicon Valley talent pool, strong venture capital structure, and Wall Street financial power, saying, “Two or three years ago, we would not have predicted that the US would become so crypto-friendly so quickly.”
However, Mr. Zhao argued that the biggest flaw in the current situation is competition, and said that free markets and competition are the strongest protection mechanisms for consumers. He noted that this idea was also shared in meetings with many senior U.S. officials, and said the market needs to be more competitive.
Commenting specifically on cryptocurrency exchanges, Zhao said that transaction fees in the US are still quite high, creating a disadvantage for users. He noted that this situation has led to a concentration of global liquidity outside of the United States, calling it “strange” that while the primary liquidity for traditional markets (such as stocks and futures) is located in the United States, the opposite is true for crypto markets.
Mr. Zhao also cited notable examples compared to other fields. Recalling that e-commerce giant Amazon offers the lowest prices in the US, CZ said that US users do not have access to the lowest prices globally in the crypto market. Mr. Zhao expressed that the problem would not be difficult to solve, and said that the United States could eventually become the world’s largest liquidity center thanks to its strong institutional investor base.
Meanwhile, CZ previously said in an interview with Bloomberg that Binance wants to grow again in the US and aims to provide high-quality products to US users.
*This is not investment advice.
