Almost 10% of the cryptocurrency exchanges considered in the survey do not have a country of registration. The amount of funds transferred by G20 countries is reduced as stock exchanges are distributed worldwide.
The United Kingdom has the highest average number of registered cryptocurrency exchange houses, according to a study by Bitfury’s analytical blockchain department Crystal published on September 9th.
The publication of Crystal’s report was aimed at producing a formal record of the type of international Bitcoin transfers, adjusting it to the new recommendations of the International Financial Action Task Force (FATF), which could take effect from 2020.
The firm examined about 300 exchange houses in 63 countries, with a special emphasis on those that were registered in the G20 nations, as well as in Asia and the Pacific.
As a result, the study showed that the United Kingdom has 43 registered exchange houses, more than any other territory in the world. The report indicates that this country is followed by the United States with 27, Hong Kong with 22 and Singapore with 19.
It was determined that Australia, China, Estonia, Brazil, South Korea and Japan are among the countries that have fewer than 10 exchange houses, while Argentina, India, Mexico, Russia and Indonesia have the lowest average number of cryptocurrency exchanges.
According to the report, almost 10% of the cryptocurrency exchange houses assessed do not have a country of registration. Regarding this, reference is made to the FATF recommendations that must be applied by the member countries of this intergovernmental body.
The new obligations issued by FATF specify that the countries must evaluate and mitigate the risks associated with cryptocurrency trading. Besides, they must license or register service providers and subject them to supervision in anti-laundering matters.
In July 2019, the countries that belong to the G20, together with the European Union, made it official that it will adopt the cryptocurrency regulation measures recommended by the FATF.
G20 in Cryptocurrency Landscape
Regarding Bitcoin transactions, the study found that 96% of the exchanges between cryptocurrency exchange houses were made by operators registered in countries of the G20 in 2013. It should be noted that this figure was reduced 70 % in 2018.
However, the report indicates that the proportion of funds transferred in the G20 countries is decreasing as exchange houses are distributed more evenly worldwide.
Concerning the international flow of Bitcoin transactions, it is highlighted that, since 2014, the United States has been the country with the highest average of transfers received per year. However, the United Kingdom has the largest record of cryptocurrency exchange houses.
So far in 2019, the countries with the highest average of international Bitcoin transfers, represented by their exchange houses, are the USA, the United Kingdom, Hong Kong and Singapore.
The report predicts that the number of cryptocurrency transfers will plummet as the FATF begins to take strong formal measures against exchanges that are not officially registered or licensed to operate.
The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States and the European Union. The countries that were not included in the report were Saudi Arabia and South Africa, due to the lack of registered exchange houses.
By Willmen Blanco