Business 13 August 2018

Gerald Fenech

Malta at the top of the list of daily trading on exchanges: report

Malta, the ‘Blockchain Island,’ is currently top of the list of those countries when it comes to cryptocurrency exchange trading volume, a new study has found. This is due to the island’s current regulatory framework, which has been described by some experts as the best in the world as far as crypto is concerned. This is quite a strange result, however, since no cryptocurrency exchange, including OKEx and Binance, is actually operating from Malta although they have set up offices on the island.

The study, which was first reported by news.bitcoin.com, also noted that over-the-counter (OTC) and peer-to-peer (P2P) exchanges were far more popular in developing nations and in countries where non-cash payments were widely distributed.

The report was conducted by financial services provider Worldcore, covering data from the months of June and July. Using statistics from a Morgan Stanley study conducted early this year, the study compared two lists of countries—one containing the top destinations by volume traded on cryptocurrency exchanges, and a second one with those that lead in terms of OTC and P2P trading volumes.

The study also confirmed that those jurisdictions that offer a favourable business climate through crypto-friendly legislation and those with well-established regulatory frameworks accounted for a larger slice of the cake with regards to exchange-based crypto trading. According to the report, Malta topped the list with a reported $1.2 billion followed by the Seychelles and Belize with $700 million each.

In a statement, Worldcore CEO Alexei Nasonov, who also led the research team, said: “Crypto exchanges are most often registered in countries with preferential taxation, and many over-the-counter trades occur in nations with low financial culture or strict tax legislation.”

Meanwhile, direct exchange methods have been popular in second- and third-world countries, including Russia, Nigeria, Colombia and Kenya, according to the study. Analysts said this is largely due to the relatively undeveloped system of non-cash exchange of crypto assets as well as fiat via appropriate payment systems and banks. There were also other causes, such as the situation in Russia, where crypto-specific regulations were still not adopted into law.

The researchers also believed that trading platforms would continue to migrate to destinations providing favorable conditions and preferential tax regimes. Malta is a good example—the island nation has already attracted companies like Binance, which is also exploring opportunities to launch a decentralized bank called Founders Bank apart from other partnerships with companies like NEufund to create a token based system. OKex, another Chinese-run cryptocurrency exchange, announced in April that it is relocating to the island, while Polish Bitbay also revealed its plans to move to Malta in May.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

CipherBlade share a lesson about crypto theft

Business 24 May 2019

CipherBlade share a lesson about crypto theft

Coinomi have been blamed for losing a customers funds, but a new investigation shows they probably weren’t to blame at all.

Read More
Brazilian police arrest culprits behind $210 million crypto scam

Business 24 May 2019

Brazilian police arrest culprits behind $210 million crypto scam

Brazil has cracked down on a massive pyramid scheme that brought in over 50 thousand victims.

Read More
Russia’s central bank expects crypto regulation bill in spring

Business 24 May 2019

Russia’s central bank expects crypto regulation bill in spring

A member of the Central Bank of Russia says she expects crypto regulations to kick in sometime in the spring of 2019.

Read More
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]