JAKARTA - The regulatory uncertainty in the United States (US) has caused the country to lose its crypto market share. More than half the amount of bitcoin (BTC) stored by crypto companies for their customers has been transferred to overseas and international exchanges. Research by CryptoQuant revealed that BTC reserves on US exchanges have dropped to levels in 2017, as these companies switched to non-US platforms.
The regulatory uncertainty in the US has led crypto industry players to seek a more stable place. Regions such as the European Union and Hong Kong have developed comprehensive regulations for digital assets, and they are experiencing capital, talent, and enterprises in the industry. Crypto companies in the US are interested in moving their operations overseas due to uncertainty and lack of clear guidance from US regulators.
VOIR éGALEMENT:
In addition, the number of ether (ETH) reserves on the US crypto exchange also continues to decline. About 56 percent of ETH is stored outside the US. The volume of international exchange trading is also much larger than US-based platforms.
The dominance of the Bitcoin spot trading volume in the US fell below the 2017 level, reaching only 21 percent. The US exchange also has a lower exposure to the futures trading market, which has a trading volume 11 times larger than the spot trading volume.
In addition to losing its market share in the crypto sector, the US also experienced a 35 percent decline in stablecoin market capitalization, with a loss of 15 billion US dollars (Rp223 trillion) in 2023. Although the US is still the dominant player in the Bitcoin mining industry, unclear regulations and a higher tax probability could see the US lose that position.
Losing the crypto market share by the US shows the need for clear certainty of rules in regulating this industry. In an effort to stay competitive, the US needs to consider more comprehensive and crypto-friendly regulations.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
