Historical Data Shows Crypto Exchange Dynamics Influenced By Regulatory Changes

by the Crystal analytics team

May 05, 2020

The 33-page report includes a detailed analysis of bitcoin transactions between 436 international exchanges from 70 different countries from 2013 through Q1 2020. The entire report can be found here: International Bitcoin Flows Analytics Report by Crystal for Q1 2020.

The objective behind this research is to help show how the bitcoin market has changed over three evolutionary stages of cryptocurrency exchange regulation, as well how it has reacted to external factors such as global financial fluctuations and increasing digital asset regulations. The report reviews these trends in light of the events of Q1 2020, as well as compared to historical data.

Following the announcement last year by the G20 that they would be supporting guidelines implemented by the Financial Action Task Force (FATF) for cryptocurrency exchanges, as well as the recent 5th Anti-Money Laundering Directive (5AMLD) digital asset legislation put in place by the EU (many of which are G20 members), this report mainly focuses on G20 transfers.

Key Findings:

In Q1 2020, the total volume of bitcoin directly transferred between exchanges was $15 billion, almost twice as large as the $8.2 billion transferred in the period Q1 2019.

Due to its low correlation with financial indexes, bitcoin is showing itself to be more resilient to economic downturns than traditional stock exchanges, according to historical data in the latest report from Bitfury’s Crystal™ Blockchain analytics division.

The volume share of all bitcoin transfers between exchanges from the G20 group decreased by almost twice the amount between 2013 and Q1 2020. This is likely due to regional and global regulation such as the introduction of “travel rule” guidelines by the FATF and 5AMLD implementation.

By the end of Q1 2020, the countries with the largest number of registered exchanges were the UK, Hong Kong, Singapore, and the US.

Seychelles transferred about 37% of the total volume of bitcoin exchanges in Q1 2020, despite the UK having more exchanges in total. This high volume is likely due to the fact that larger exchanges like Binance and Huobi are registered in Seychelles.

Nearly 17.7% of all global exchanges surveyed do not have countries of registration, or this information is not publicly available as of yet.

To see this data on an interactive map and to download the full report, please visit our Bitcoin Flows Analytics Map webpage on the Crystal Blockchain website.

Similar news

The Importance of Knowing Your Cryptocurrency Transaction (KYT)

As traditional banks and financial institution become more directly involved with cryptocurrencies, they need to consider KYT as part of their KYC compliance due diligence

by the Crystal analytics team

Sep 21, 2020

Bitfury Crystal partners with PARSIQ to power their blockchain monitoring

World-leading blockchain monitoring system, PARSIQ will integrate Crystal Blockchain’s transaction risk scoring capabilities to power their AML and KYT processes for VASPs.

by the Crystal analytics team

Sep 03, 2020

The importance of Ripple monitorization on the Crystal platform

Ripple (XRP) cryptocurrency released in 2012 stands behind bitcoin and Ethereum only in terms of market capitalization, as of August 2020. Ripple is the sixth digital asset to be supported by the Crystal Blockchain analytics platform, adding to the current list of bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH, as well as ERC20 and ERC721), Litecoin (LTC), and Tether (USDT).

by the Crystal analytics team

Aug 19, 2020

2020 Report on Fund Sources for Dormant Bitcoin Addresses

It's been 11 years since the genesis Bitcoin block was created. During these last 11 years, bitcoin has been used for payments, exchange trading, and as a store of value. Not all mined bitcoins move much after their creation, however.

by the Crystal analytics team

Aug 04, 2020

Bitfury’s Crystal to assist the Ukrainian Ministry of Digital Transformation

Bitfury’s Crystal analytics to assist the Ukrainian Ministry of Digital Transformation

by the Crystal communications team

Jul 24, 2020

Crypto Regulation Continues To Progress Despite COVID-19 Pandemic

The Crystal Blockchain analytics team continues its quarterly update to the International Bitcoin Flows Analytics Report that was first compiled back in September 2019. This update takes into account fund flows from 2013 through the first six months of 2020. The report also considers the progress that has been made with the FATF guidelines and “travel rule”, despite the current COVID-19 pandemic that has seen many processes slowed down or stalled.

by the Crystal analytics team

Jul 14, 2020

Bitfury Group Brings Crystal Blockchain to India with HumanSTAR*

India's Strategic Advisory Firm, HumanSTAR* to offer Crystal Blockchain Analysis for Indian Law Enforcement Agencies

by the Crystal communications team

Jul 07, 2020

Upbit and Crystal partner to strengthen exchange’s compliance

South Korea-based crypto exchange Upbit will use Crystal analytics to strengthen AML compliance procedures

by the Crystal communications team

Jun 19, 2020

11 Years Later: Is Satoshi Nakamoto Finally Moving Bitcoin Funds?

More than ten years after the launch of the Bitcoin Blockchain, coins that were mined on February 9, 2009 have just started moving. Yesterday, 50 BTC left the address 17XiVVooLcdCUCMf9s4t4jTExacxwFS5uh. They were initially received in block number 3,654, created on February 9, 2009 - exactly one month after bitcoin mining started.

by the Crystal analytics team

May 22, 2020

Darknet Use and Bitcoin — A Crypto Activity Report by Crystal Blockchain

This report by Crystal Blockchain analytics reviews the use of bitcoin by darknet entities. The report analyzes darknet interactions with exchanges and other entities throughout the first quarter of 2020 and compares it to historical darknet activity from the past three years.

by the Crystal analytics team

May 19, 2020

2019 Crypto Compliance: Year in Review

2019 was a year of preparation and standardization for the cryptocurrency industry, as regulators around the world came together to enforce tangible legislation impacting the ecosystem. In the U.S., SEC Chairman Jay Clayton spoke candidly to a Senate Committee in December, informing them that the SEC is taking a measured yet proactive regulatory approach to crypto that will both foster innovation and capital formation while protecting investors and U.S. markets.

by Marina Khaustova

Dec 27, 2019

2019 Darknet Interactions and Bitcoin — A Crypto Activity Report by Crystal Blockchain

The Crystal analytics team have compiled a detailed report based on investigations into darknet interactions using bitcoin, and how regulation is changing trends.

by the Crystal analytics team

Dec 15, 2019

The Year in Review for Crystal Blockchain Analytics — 2018

The Crystal™ analytics platform is the all-in-one blockchain analytics tool for law enforcement bodies, capital market companies and financial organizations. This software provides a comprehensive view of the public blockchain ecosystem and uses advanced analytics and data scraping to map cryptocurrency transactions and related entities and to reveal suspicious funds and participants.

by Marina Khaustova

Jan 24, 2019