@zeroeden
When cross-border “passporting” is debated, trading volume distribution often realigns. More permissive regimes attract inflows, concentrating liquidity in compliant hubs. This shifts fiat-pair depth as demand to transact through approved currencies rises. Modeling requires simulating capital flight between jurisdictions under new access rules. Depth on local fiat pairs may thin in restrictive markets, while dominant currencies gain further concentration. This redistribution affects arbitrage costs and spreads across regions. Thus, passporting discussions reshape not only institutional geography but also fiat depth architecture underlying global crypto pricing.
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