Malta Excels at Crypto-Exchange Transactions
Countries with more welcome laws and regulations regarding cryptocurrencies are now excelling at significant amounts of trading volume of digital trading platforms. As new research has revealed, over the counter and P2P transactions is rising more in popularity within upcoming countries that have yet to generally adopt payment methods other than cash.
The study by Worldcore, a financial service company, researches data acquired from the last couple of months and utilizes statistics acquire from a study by Investment bank Morgan Stanley in 2018 to place both lists of nations side by side and compare each of them with one list holding the leading countries in terms of transaction volume on digital currency exchanges and the other listing those that were dominating OTC trading as well as P2P.
As the study has revealed, nations willing accepting and adopting cryptocurrencies as well as implementing fair and friendly laws and regulations as responsible for a significant amount of trade based on exchanges. Malta currently tops the list with $1.2B with Belize and Seychelles following with $700M each for a total of $2.6B in 24-hour trade volume.
Following the leading countries in cryptocurrency exchange trade volume are those that have accepted crypto to a certain degree such as South Korea, the US and others. Additionally, Russia comes in at number 13 in terms of daily trading volume with under $50M. Researchers have compared the crypto-trade numbers for both exchange and other methods of exchange from one week in July, from the 14th to the 21st through acquired data by Localbitcoins, another established peer to peer exchange.
Results revealed that Russia was now leading in average weekly trades of two thousand Bitcoins with the US following at one thousand Bitcoins.
The study’s researchers and authors did mention notable reasons for the deviation. Alexei Nasonov, Chief executive officer at Worldcore, stated that cryptocurrency trading platforms are mostly registered within nations that advantageous tax laws and several OTC trading happens within countries that offer lower financial costs or more restrictive tax laws.
Additionally, analysts have mentioned the rise in favor of developing countries like Nigeria operating with direct exchanges as is mainly because payment systems for anything other than hard cash have not yet thoroughly developed in these nations. Strict regulations are also a leading factor, with Russia as an example where specially designed laws and regulations regarding cryptocurrencies have yet to receive the acceptance and widespread adoption it requires and cryptocurrency exchanges have yet to be officially regulated. The study team is convinced that exchanges will continue relocating to countries that offer friendlier and most accommodating legislation and favorable tax laws.
Malta is currently among the countries promoting the acceptance and adoption of crypto and blockchain technology, having successfully drawn in some of the most distinguished names in the industry to launch their own businesses within the nation. Additionally, the team believes that the average trading volume will climb in the foreseeable future.