With a well-defined regulatory framework, Malta now has the world’s largest cryptocurrency transaction volume. This result comes from the April 29 Business Insider report referring to recent research by Morgan Stanley.
A team of Morgan Stanley researchers led by analyst Sheena Shah led a study based on volume data from Coinmarketcap on all cryptocurrency exchanges and cryptocurrency transaction volume distribution in all countries and company registration information listed on related stock exchange websites.
Top five countries with the highest crypto trading volume
The top five countries with the highest crypto trading volume are Malta, Belize, Seychelles, USA and South Korea respectively.
Most stock markets in the country hosting the United Kingdom, Hong Kong, USA, Singapore and Turkey.
One of the earliest discoveries of the work was the controversy about the benefits from Malta and Belize. – the two countries are ranked first and second in the world according to trade volume, but they are ranked 22nd and 24th according to the number of registered companies.
According to the researchers, this contradiction is explained by the fact that relatively small countries are home to the two biggest stock exchanges according to trade volume. Binancemoved from Hong Kong to Malta this year after promising in March, and now the second largest stock exchange in the Coinmarketcap, OKEx is officially registered in Belize. Shah said:
“The biggest stock exchange named Binance has announced its intention to establish a headquarters in Malta, so if we remove this company, Malta will be far behind.”
In general, Shah concluded that it was one of the key factors taken into consideration by the crypto money exchanges when deciding on which country the suitability of the local cryptographic business regulation would be. Shah added that it is not compulsory for a certain regulatory framework to be attractive. Instead, he stated that they had to be well-defined because they expressed that they could plan for the future by knowing what to expect for the stock market.
“A defined but at the same time attractive regulation allows a stock exchange to select a country instead of the other – digital (crypto) tokens, customer assets, AML policies, A set of laws for companies to follow when they are interested. Arrangement is a part of the prestige of companies that can make plans on what they know they will expect for the future. Low taxes are also an advantage. ”
This assumption appears to be in line with the Maltese experience, which recently explained that the government has shown a positive attitude towards businesses related to crypto-currencies.Morgan Stanley’s research provided clear evidence that Malta’s active development of a thoughtful legal framework gave the expected fruition.