Who is to Blame for Reducing Crypto Exchange Volume in the US?
The US is a leading economy in the world, the developed country that has given birth to many technologies and business which have become a brand now. But, even this economy is lacking somewhere to support the crypto world. Though it accommodates big traditional exchanges like NYSE and NASDAQ, which are the leading exchanges in the world in terms of exchange volumes, the U.S. has not been able to maintain the reputation in the crypto space. Rather Asian exchanges are leading the row.
It is not that the US never tried to hit the highest point; the U.S. exchanges like Poloniex once recorded the most significant exchange volume, but then Asian crypto exchanges like Huobi and Binance has taken the lead and are still maintaining the position. Binance is the leading crypto-currency exchange in the world (in terms of crypto exchange volume). Founded in 2017, this exchange now has more than 100 companies listed on its platform.
Many governments across the world are trying to keep a strict eye on the spread and utility of crypto/digital currencies. In some countries, the regulations and laws are more stringent, while in some countries they are a little bit relieved. Governments are scared of the currencies which are decentralized and are not controlled by any official government body. When the rest of the world is fathoming their action on this new form of money, is the US losing crypto exchange volume due to the strict government attitude or there are other factors?
Marketers and crypto lovers will not deny the fact that the US is a comparatively more crypto-friendly country than the rest of the world. However, the US is not a laissez-faire space for crypto exchanges. Considering the multiple regulators who are involved in supervising different stages of crypto regulation and enforcement, this fact is visible. This has to lead to many crypto exchanges shifting their focus outside the U.S.
The Founder of Binance Changpeng Zhao stated that the exchange is not looking forward or expecting a large number of users from the US in anytime soon. A couple of years ago, the IRS defeated Coinbase and t was made obligatory for Coinbase to disclose user information that has done transaction above $20,000 between 2013 and 2015.
One of the oldest and public crypto exchanges in the US, Poloniex, declared last year that it would be stopping some of its operations so that the exchange fit into the regulations of the US government. The announcement stated,
“By the end of the year, we’re taking steps to remove our margin and lending products for U.S.-based customers. These changes are part of our ongoing commitment to ensure that Poloniex complies with regulatory requirements in every jurisdiction.”
In 2017, Poloniex recorded some of the highest trading volumes, but after that, the US regulations changed in many ways which affected the crypto space and the trading volume of Poloniex too. Now, it is barely managing to maintain its position in the first ten largest crypto exchanges in the world.
According to one more theory, it happened because the American exchange was not able to commit to aggressive growth planning.