Over 50% of BTC on exchanges moved outside the US due to regulatory uncertainty: data

Over 50% of BTC on exchanges moved outside the US due to regulatory uncertainty: data

Due to unclear regulations in the United States, more than half of the Bitcoin (BTC) that crypto firms hold for their customers has moved to offshore and international exchanges.

According to a research report shared by CryptoQuantCryptoPotatoBTC reserves on US-based crypto exchanges have fallen to 2017 levels as they are lost to platforms outside the US.

Offshore exchanges dethrone US crypto platforms

The significant decline in BTC reserves on American exchanges is due to the lack of a clear set of rules for the crypto industry. Regulators have resorted to an enforcement-based approach, pushing crypto firms offshore.

Regions such as the EU and Hong Kong, which have developed comprehensive regulations for emerging economies, are seeing an influx of capital, talent and digital asset companies. Hong Kong, in particular, has opened up to crypto companies, saying they would adopt the principle of “same activity, same risks, same regulation” for companies similar to traditional financial companies.

Several exchanges have decided to leave the US, while others are discontinuing certain products and services due to allegations of violations. With increasing de-dollarization, the country is gradually losing its market share in emerging and existing sectors.

Over 50% of BTC and ETH outside the US

Aside from the declining BTC reserves in the US, Ether (ETH) reserves have also been steadily declining. About 56% of ETH on crypto exchanges is held outside the United States.

Furthermore, the trading volume of international crypto exchanges is four times larger than that of US-based platforms. Bitcoin spot trading volume dominance in the US has fallen below 2017 levels and currently stands at 21%. American exchanges have little to no involvement in the perpetual futures trading markets, whose volume is 11 times the spot trading volume, because companies are not allowed to offer this service, the report continued.

In contrast, spot and futures trading volume growth in Asia is up to 30% and 20%, respectively.

Research from CryptoQuant also found that the market cap of US-based stablecoins has fallen by 35%, losing $15 billion so far in 2023.

Unterdessen bleiben die USA der weltweit dominierende Akteur in der Bitcoin-Mining-Industrie. However, the country could lose this position due to poor regulation as the government targets miners with the possibility of higher taxes. Die USA verlieren ihren Krypto-Marktanteil, da regulatorische Unsicherheit Unternehmen und Vermögenswerte ins Ausland treibt.

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