The United Kingdom and the United States of America have the largest number of registered digital currency exchanges, followed by Hong Kong and Singapore, according to a recent report from Bitfury’s blockchain analytics platform Crystal.
U.K. and U.S.A. are the leaders
The “Report on International Bitcoin Flows 2013–2019” published by Crystal provides insight into cryptocurrency operations and Bitcoin transactions around the world, between January 1, 2013, and June 30, 2019. The report states:
“The UK has the largest number of registered exchanges (outside of the aggregated European Union), followed by the USA.
The Asia-Pacific countries with the largest number of exchanges are Hong Kong and Singapore.”
Countries such as Argentina, India, Mexico, Russia and Indonesia report the fewest registered exchanges. Also, almost 10% of all exchanges considered in the survey do not have countries of registration. The report further states:
“In 2013, 96 percent of all bitcoin transferred between exchanges were sent by exchanges from the “G20 & Other” group. In 2018, it decreased to 70 percent.
In 2018, the total volume of bitcoin directly transferred between exchanges was almost $92.6 billion. A total of $65.1 billion was transferred by exchanges from G20 countries, Hong Kong, and Singapore.”
Regulations impact on crypto exchanges
The United Kingdom hosts 43 market operators, the US hosts 27 exchanges, despite restrictions for some states, Hong Kong has 22 exchanges, Singapore has 19 exchanges and Australia, one of the most crypto-friendly countries, hosts nine exchanges.
Even though U.K. is seen as a global leader when it comes to crypto adoption and innovation, there are still no regulations to support exchanges, platforms or other related businesses. Consumers are not protected, which makes many investors stay away from the crypto market. As stated in the report:
“Highlighting the “threat of criminal and terrorist misuse of virtual assets” as a “serious and urgent” issue, the FATF said it will give its 37 member countries one year to adopt these new guidelines, with a review planned for June 2020. The G20 has also announced its support for this rule.”
G20 leaders reaffirmed their previous position regarding cryptocurrencies in a declaration following the G20 Summit in Osaka, on June 29. The G20 leaders said that cryptocurrencies are not a threat to monetary stability, and that technological innovation can deliver important benefits to the economy.