Seychelles-based exchanges led the world in Bitcoin cross-border transactions (BTC) in 2019. What Switzerland is to the world of watchmaking, the Seychelles is to the world of crypto-currency exchanges.
This small island nation, with a total population of less than 100,000, presents a perfect playing field for companies looking for a place to optimize their tax obligations, since it has regulators that operate with a light touch.
The data seems to contradict Bifinex’s story about the decline of its Bitcoin deposits
The United States is in second place
The Crystal Blockchain report examined Bitcoin flows between exchanges around the world. The Seychelles exchanges led in terms of funds sent and received.
International Flow of Bitcoins
It should be noted that the report considers Binance (BNB) to be a Seychelles exchange. In 2019, 12 local exchanges received USD 15.83 billion BTCs from foreign exchanges and sent USD 20.83 billion BTCs. The 25 US exchanges took in USD 18 billion of total cross-border turnover.
Bitcoin Post-Halving Report (Q2 2020) by Cointelegraph Markets Research
EU Seychelles leads the way
The most active international trade routes are Seychelles; EU Seychelles, US Seychelles; South Korea, each of which produces volumes in excess of USD 2 billion.
As regulators around the world move to tighten control over digital assets, it will be interesting to see what effect this will have on the world of crypto currency exchanges. If more exchanges migrate to jurisdictions that offer better investor protections, the opposite will happen as a form of protest against the over-reaching reach of governments.