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Due to unclear regulations in the United States, more than half of the bitcoin (BTC) held by crypto firms for their clients has been moved offshore and to international exchanges.
Shared with CryptoQuant Research Report crypto potatoBTC reserves on US-based crypto exchanges are down to 2017 levels as they are being lost to non-US platforms.
Offshore Exchanges Explore US Crypto Platform
The significant drop in BTC reserves on US exchanges stems from the absence of a clear rulebook for the crypto industry. Regulators have resorted to an enforcement-based approach, driving crypto firms to offshore locations.
Regions such as the European Union and Hong Kong, which have developed comprehensive regulations for the nascent economy, are experiencing an influx of capital, talent and digital asset firms. Hong Kong, in particular, has opened up to crypto companies and has stated that they will adopt the “same activity, same risk, same regulation” principle for the same entities as traditional financial firms.
Several exchanges have decided to pull out of the US, with some products and services being discontinued due to allegations of infringement. The country is gradually losing its market share in emerging and existing sectors as de-dollarization progresses.
Over 50% of BTC and ETH held outside the US
In addition to the decreasing BTC reserves in the US, Ether (ETH) reserves have also been on a steady decline. About 56% of ETH on crypto exchanges are held outside the United States.
Furthermore, the trading volume of international crypto exchanges is four times higher than that of US-based platforms. Bitcoin’s spot trading volume dominance in the US has dropped below 2017 levels and currently stands at 21%. The report noted that US exchanges have little or no exposure to perpetual futures trading markets, which have 11 times the volume of spot trading volumes, because firms are not permitted to offer the service.
In contrast, Asia’s spot and futures trading volumes grew by 30% and 20%, respectively.
Research by CryptoQuant further found that the market cap of US-based stablecoins is set to drop by 35% in 2023, with a shortfall of $15 billion so far.
Meanwhile, the US remains the world’s dominant player in the bitcoin mining industry. However, the country could lose that status due to poor regulation, as the government is targeting miners with the potential for higher taxes. The US is losing its crypto market share as regulatory uncertainty drives firms and assets offshore.
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Due to unclear regulations in the United States, more than half of the bitcoin (BTC) held by crypto firms for their clients has been moved offshore and to international exchanges.
Shared with CryptoQuant Research Report crypto potatoBTC reserves on US-based crypto exchanges are down to 2017 levels as they are being lost to non-US platforms.
Offshore Exchanges Explore US Crypto Platform
The significant drop in BTC reserves on US exchanges stems from the absence of a clear rulebook for the crypto industry. Regulators have resorted to an enforcement-based approach, driving crypto firms to offshore locations.
Regions such as the European Union and Hong Kong, which have developed comprehensive regulations for the nascent economy, are experiencing an influx of capital, talent and digital asset firms. Hong Kong, in particular, has opened up to crypto companies and has stated that they will adopt the “same activity, same risk, same regulation” principle for the same entities as traditional financial firms.
Several exchanges have decided to pull out of the US, with some products and services being discontinued due to allegations of infringement. The country is gradually losing its market share in emerging and existing sectors as de-dollarization progresses.
Over 50% of BTC and ETH held outside the US
In addition to the decreasing BTC reserves in the US, Ether (ETH) reserves have also been on a steady decline. About 56% of ETH on crypto exchanges are held outside the United States.
Furthermore, the trading volume of international crypto exchanges is four times higher than that of US-based platforms. Bitcoin’s spot trading volume dominance in the US has dropped below 2017 levels and currently stands at 21%. The report noted that US exchanges have little or no exposure to perpetual futures trading markets, which have 11 times the volume of spot trading volumes, because firms are not permitted to offer the service.
In contrast, Asia’s spot and futures trading volumes grew by 30% and 20%, respectively.
Research by CryptoQuant further found that the market cap of US-based stablecoins is set to drop by 35% in 2023, with a shortfall of $15 billion so far.
Meanwhile, the US remains the world’s dominant player in the bitcoin mining industry. However, the country could lose that status due to poor regulation, as the government is targeting miners with the potential for higher taxes. The US is losing its crypto market share as regulatory uncertainty drives firms and assets offshore.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
