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 CryptoQuant research report shared with CryptoPotato, BTC reserves on U.S.-based crypto exchanges are down to 2017 levels, as they are being lost to non-U.S. platforms.
Offshore Exchanges Dethrone US Crypto Platforms
The significant decline in BTC reserves on American exchanges stems from the absence of a clear rule book for the crypto industry. Regulators have resorted to an enforcement-based approach, driving crypto firms to offshore locations.
Regions like the EU and Hong Kong, which have developed comprehensive regulations for the nascent economy, are experiencing an inflow of capital, talent, and digital asset firms. Hong Kong, in particular, has opened up to crypto companies and stated that they would adopt the “same