South Korea and Indonesia are the next regions with the most reception of cryptocurrency exchanges. Rich countries are the ones that most invest in digital assets
Recent research showed that The United States and Japan are the main sources of traffic for cryptocurrency exchanges around the world. The study published by the crypto news site The Block indicates that the leader of that list is the American country.
The information was also detailed in Japanese media and shows that 24.5% of the total traffic sent to cryptocurrency exchanges originates in The United States. Japan ranks second, with 10% of total traffic, whilst South Korea obtained approximately 6.5% and Indonesia around 4.5%.
However, these results could be slightly different if it is considered that, in countries such as China, the access to cryptocurrency exchanges is blocked. For this reason, due to the repression of some governments that ban the exchange of cryptocurrencies, users in these territories generally access through Virtual Private Networks (VPN). In this way, China may account for a larger percentage of exchange users that are being falsely attributed to other countries, thanks to the VPN.
The process for the computer to act as if it were in another country -one with different permissions- is simple for some users. VPNs have the function of masking the IP addresses of users, making it appear that they are in another country. This fact reduces the precision of the study about the countries that participate in the exchange processes.
Largest Cryptocurrency Trade
These recent studies found a positive correlation between a country’s gross domestic product per capita and the volume of Internet traffic directed to cryptocurrency exchanges.
Whilst it is true that some companies that have suffered losses resort to cryptocurrencies -as well as countries that face inflation do- the document states: “Data shows poorer countries are not trading crypto as much as wealthier countries”. Taking this into account, cases of countries with affected economies would be the minority in exchange processes, unless the user employs VPNs.
These results could mean that countries whose citizens have more acquisitive potential are betting on cryptoactive, even when the price instability in past months, as well as the theft of assets in some platforms, affected trust in those digital assets.
In this regard, Bitwise Asset Management, an American cryptocurrency investment manager, published a document stating that the volumes of false transactions of cryptocurrency exchanges do not affect the price of Bitcoin (BTC).
A few weeks ago, it was known that the Financial Services Agency of Japan is taking action against cryptocurrency exchanges that offer anonymous transactions or have weak identity verification practices. This measure is implemented to provide security to users, avoid fraud and works as a form of preparation for the inspection that the Financial Action Task Force will execute this fall.
Regulations in different countries seek to establish an order of rules to give a clear way in trading with cryptocurrencies, but also to protect its users. Japan is an example of this, as are American regions like Montana, which recently recognized utility tokens and exempted them from the state securities law.
By María Rodríguez