Owing to increase in number of Bitcoin exchange across Asia, which bring a certain healthy competition and maturity to the cryptocurrency industry. As of today, the market cap of Bitcoin (BTC) is at $440 Billion, representing a Bitcoin dominance of 39.58%. The ranking process was as quantitatively driven as possible, drawing data from multiple reliable sources. However, while cryptocurrency deposits to centralized services like exchanges show up on-chain, any transactions within those services, such as trades within an exchange, arent captured on-chain, and only show up in those services order books, which we have limited or even no access to in some cases. This boosts the adoption of cryptocurrency in the future. The brands and the logos appearing on this website are registered trademarks by their respective brand owners. This means that if a client of these firms were to take the firm to court in Hong Kong (per the Terms of Use instructions), the answer from the courts could well be that they (the courts) have no jurisdiction or interest in those matters because they dont sanction crypto investing and dont regulate those firms. The sixty firms offering crypto investing to retail audiences in our study received a total of 3.92 billion visits during the last quarter of 2021. If you are new to crypto, use the .css-1qj55em{transition-property:var(--chakra-transition-property-common);transition-duration:var(--chakra-transition-duration-fast);transition-timing-function:var(--chakra-transition-easing-ease-out);cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:2px solid transparent;outline-offset:2px;color:#1199FA;}.css-1qj55em:hover,.css-1qj55em[data-hover]{-webkit-text-decoration:none;text-decoration:none;}.css-1qj55em:focus-visible,.css-1qj55em[data-focus-visible]{box-shadow:var(--chakra-shadows-outline);}Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies. Ten of the exchanges on our list, names like Coinbase, Gemini, Kraken and FTX.US, are most compliant from a regulatory standpoint and thus considered Class A according to our survey. We should note that for our analysis we only counted what we believe are 17 large Class D firms. However, the software segment is expected to grow at the highest rate during the cryptocurrency market forecast period, as it facilitates to manage the massive volume of data being generated for meaningful insights and better-informed decisions. Before Class A firms list a new token, they have to hire costly experts to assess pros and cons of listing a new asset in the current uncertain regulatory climate. The cryptocurrency market size is quantitatively analysed from 2020 to 2030 to highlight the financial competency of the industry. Our data shows that residents of more and more countries around the world are taking the dive into cryptocurrency or seeing existing adoption increase. Our research suggests that reasons for this increased adoption differ around the world in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment. This isnt the case for DeFi though. The ASIC is further segregated into full custom ASIC, semi-custom ASIC, and programmable ASIC. Didn't receive confirmation instructions? Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Not including Binance, Class C exchanges get only a 7% share of global visits to websites of retail crypto investment providers and they capture a 10% share of estimated trading volume. In the United States there is no member organization like FINRA to self-regulate crypto-exchanges despite the fact that from a customer standpoint these exchanges function very similarly to broker-dealers like E-Trade or Schwab. That makes sense given the use cases we described, as remittance payments and personal and commercial transactions carried out by merchants in emerging markets are likely to be smaller than transactions carried out by professional traders or institutional investors. The current number of unique active users of cryptocurrency wallets is estimated to be between 2.9 million and 5.8 million. We close our report with a few actionable tips for prudent investors new to crypto to help them identify warning signs and the right service provider. To learn more about how blockchain technology and digital mining work, challenges and regulations around digital currency and more, download our FREE guide on what you need to know about investing in cryptocurrency. Some of them will choose to exit the U.S. market, and consolidation will start to take place. Learn about latest developments in regulation, offering, issuance, listing, and trading of crypto assets and related financial activities. Lots happened in mainland China and Hong Kong in 2021, and neither Hong Kong nor the mainland sanction or regulate crypto trading or mining today. III. The table below shows the top 20 countries in our 2021 Global Crypto Adoption Index, as well as their rankings in the three component metrics that make up the overall rankings. Knowing that, its no surprise that regions with many emergent markets account for a huge portion of web traffic to P2P services websites. Several countries in emerging markets, including Kenya, Nigeria, Vietnam, and Venezuela rank high on our crypto index in large part because they have huge transaction volumes on peer-to-peer (P2P) platforms when adjusted for PPP per capita and internet-using population. We initially used this as a metric to determine which countries residents are carrying out the most cryptocurrency transactions, as this would capture both the number of individuals using cryptocurrency and boost countries whose residents are carrying out more transactions per user. Vote to see results. Their sites have lots of risk disclosures and have prudent marketing. DID YOU MISS ANYTHING? The market size for cryptocurrency will get to $1087.7 million by 2026.We are here to set the foundation for trading and investing in digital currencies, Global CryptoCurrency Summit will be bringing together cryptocurrency owners, wallets, exchanges, lawyers, regulators, crypto thought leaders, investors, traders, miners and hodlers over 4 hours of impactful conversations and engaging discussions. Below, well explain the indexs methodology and how its changed compared to last year before showing you the top ranked countries for cryptocurrency adoption, as well as a few trends we found interesting. P2P trade volume makes up a significant percentage of all cryptocurrency activity, especially in emerging markets. At the end of Q2 2020, following a period of little growth, total global adoption stood at 2.5 based on our summed up country index scores. Forbes estimates that the unduplicated number of unique visitors coming monthly to crypto exchanges (Classes A, C, and D) stood at 100 million as of January 2022, while the total visitors to Class B sites was 208 million. Moreover, high implementation cost and lack of awareness of cryptocurrency among the people in developing nations hamper the cryptocurrency market growth. It is not intended to offer access to any of such products and services. *Taxes/Fees, if applicable will be added during checkout. To help address the widespread fake volume in the industry, specialist entities like CoinMetrics and others publish reports that illustrate the problem. .css-1kcea14{font-size:small;font-weight:var(--chakra-fontWeights-normal);}Fiat Currency. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Class A firms also rent office space in expensive financial districts, hire qualified personnel for compliance, retain transaction monitoring software like those of Chainalysis and Elliptic and run up a considerable professional services bill. Transactions carried out by DeFi protocol users all show up on-chain, as no centralized service ever takes custody of users digital assets. The location of where the crypto firm registered as its headquarters (or what domicile the firm listed within its Terms of Service document) is what we used to create the tables below and answer questions such as: What are the geographic areas that crypto exchanges use as base of operations? and how significant is the crypto business that originates from firms located in these geographic areas?. Experts we spoke to agreed that the index matched their perception of the cryptocurrency market, giving us more confidence in the methodology. However, that would favor only the countries with high levels of professional and institutional cryptocurrency adoption, as those market segments move the largest sums of cryptocurrency. Chainalysis is growing fast, globally. The biggest change to our methodology this year was the elimination of a fourth metric that contributed to each countrys overall ranking in 2020: Number of deposits by country weighted by number of internet users. Blockchain is a decentralized technology spread across many computers that manages and records transactions. We dubbed these firms Class B firms. The global players focus on product development to increase their geographical presence, owing to increase in competition among local vendors, in terms of features, quality, and price, Start reading instantly ,This Report and over 13000+ more Reports, Available with Avenue Library, T&C*. The higher the ratio of on-chain value received to PPP per capita, the higher the ranking, meaning that if two countries had equal cryptocurrency value received, the country with the lower PPP per capita would rank ahead. All Rights Reserved, Author(s) : Aarti Goswami, Pramod Borasi , Vineet Kumar. Firms that are already accustomed to regulation, such as SEC-regulated broker dealers, will hold an edge over the small and midsize crypto exchanges. A. The cryptocurrency market is segmented on the basis of offering, process, type, end user and region. Chart below shows the bitcoin dominance percentage as compared to other cryptocurrencies in the top 10 ranking. English Deutsch Franais Espaol (Espaa) Espaol (Latinoamrica) Trke Ting Vit Portugus (Portugal) Portugus (Brasil) Italiano Nederlands Bahasa Malaysia English (India) Bahasa Indonesia, $ USD ARS$ ARS R$ BRL EUR GBP HK$ HKD Rp IDR INR JPY KRW RM MYR NGN TRY RUB S$ SGD NT$ TWD UAH VND R ZAR, Scan to download the app and claim rewards, Huobi is here for you. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Our biggest question for the next twelve months is how much adoption will continue on those platform categories compared to new and emerging models we havent seen yet. Win a Blockchain enabled Digital Badge on attending our summit. At least 1,876 people are working full- time in the cryptocurrency industry, and the actual total figure is likely well above two thousand when large mining organisations and other organisations that did not provide headcount figures are added. The chart below shows the market cap and volume of all Altcoins. There are numerous white-label technology firms around the world like Cyprus-based B2Broker, New York Citys Alphapoint, and Londons GCEX that offer aspiring entrepreneurs the software and data needed to get started with a cryptocurrency exchange. Moreover, companies in this industry are adopting various innovative techniques such as mergers and acquisition activities, to strengthen their business position in the competitive matrix. Please refer to the disclaimers here for more information about S&P Dow Jones Indices' relationship to such third party product offerings. The chart below shows the market cap and volume of all Stablecoins. Central and Southern Asia, Latin America, and Africa send more web traffic to P2P platforms than regions whose countries tend to have larger economies, such as Western Europe and Eastern Asia. Interested to stay up-to-date with cryptocurrencies? While we have tried to include all such products, we do not guarantee the completeness or accuracy of such lists. How do you feel about Global Cryptocurrency today? The goal of our crypto index is to provide an objective measure of which countries have the highest levels of cryptocurrency adoption. MPhil in Technology Policy Final Group Project, Guidance for UK employers of non-EEA students. The Cryptocurrency Market is segmented on the basis of offering, process, type, end user and region. Three key trends jumped out to us as significant. Furthermore, rise in digitalization in the BFSI industry, surge in awareness of cryptocurrency, and increase in adoption of blockchain distributed ledger among supply chain industries in the Asia-Pacific region propels the growth of the market. You may opt-out by. A. Bitcoin (BTC) segment will dominate the market by the end of 2030. Increase in need for operational efficiency and transparency in financial payment systems, rise in demand for remittances in developing countries, increase in data security, and improved market cap are the major factors that drive the growth of the global cryptocurrency market. The key growth strategies of Cryptocurrency market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations. Hong Kong regulatory licenses Type 1, 7, and 9 issued by the Hong Kong SEC are not easy to obtain. With Binance, this class gets 47% of all traffic to crypto exchanges and 52% of all volume. How To Of Crypto Provider Due Diligence. Engage in live conversation on investment, trading, and business opportunities in crypto ecosystem. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions. The study details the key industry sectors that have emerged and the different entities that inhabit them. According to Oxford Business Group, Nigeria is the leading country for Bitcoin and cryptocurrency adoption due to use it as a means of sending remittances.. By region, the cryptocurrency market was dominated by Asia-Pacific in 2020, and is expected to retain its position during the forecast period. In addition, the central bank of Philippines approved 16 cryptocurrency exchanges. DO YOU HAVE SPECIFIC REQUIREMENTS? Japans approach to crypto regulation since the hack of two prominent crypto exchanges in 2018 Coincheck and Zaif has been to encourage the creation of a self-regulating entity, which now has 40 members and sets membership criterion on matters such as safety of hot wallets. The report focuses on the growth prospects, restraints, and trends of the global crtyptocurrency market analysis. The goal of this metric is to rank each country by total cryptocurrency activity, but weight the rankings to favor countries where that amount is more significant based on the wealth of the average person and value of money generally within the country. Another potential trap for investors is relying on the trust scores or exchange scores on popular price and data sites like CoinMarketCap and CoinGecko.com. One of the key objectives of our study was to divide crypto exchanges into cohorts to conduct more refined analysis. The hardware segment acquired major cryptocurrency market share owing to rise in need for upgrading the performance of the software and to enhance the efficiency of financial payment tools. The administrative part of any new crypto exchange launch the website, the legal set up, and the financial connections tend to be a minor cost. Furthermore, innovative blockchain distributed technology protocols are expected to replace the need for certain organizational solutions and allow diverse players to share payment transparently across the company. It uses blockchain technology to authenticate the transactions. The use of crypto currency across banking industries provides various benefits such as sending and receiving payment transparently and storing customers detail information securely for next purpose., For instance, PayPal is an American-based company, operating in an online payment systems. Even exchanges with heavy trading volume in a particular cryptocurrency or pair of cryptos, is a faulty indicator of quality, because in an environment teeming with unregulated providers, it is relatively easy for exchanges to simply report fake numbers. Furthermore, it does not rely on banks to verify the transactions but is used as peer-to-peer system that enable users to send and receive payments from anywhere in the world. Type above and press Enter to search. Class A consists of the most global, regulated, and well capitalized firms, while Class B firms are non-crypto-native financial institutions, Class C are regulated crypto exchanges in particular countries or regions, and class D firms tend to be unregulated or lightly regulated crypto exchanges. Having no such requirements, Class D firms can allocate more resources at marketing and customer acquisition. Cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins give those residents a way to circumvent those limits to meet their financial needs. 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T&C*. In fact, many Class D exchange websites may be out of business but remain up to dupe new investors who dont know the signs of a zombie crypto exchange. You may obtain access to such products and services on the Crypto.com App. At the end of Q2 2021, that total score stands at 24, suggesting that global adoption has grown by over 2300% since Q3 2019 and over 881% in the last year. Join the 4 hours of virtual crypto gathering, discuss business and investment opportunities, and embrace the digital hug with your virtual peers. Our ranking methodology employs 10-categories each with a maximum of 3 points and a minimum of zero. This website uses cookies for functionality, analytics and advertising purposes as described in our. At that point, the U.S. and China see their P2P transaction volume shrink as the rest of the world grows. We rank all 154 countries according to each of those three metrics, take the geometric mean of each countrys ranking in all three, and then normalize that final number on a scale of 0 to 1 to give every country a score that determines the overall rankings. Sometimes the cost for such software is no more than $5,000 a month. Get detailed COVID-19 impact analysis on the Cryptocurrency Market. It entered into the cryptocurrency market on October 21, 2020 and announced that customers will be able to buy and sell Bitcoin and other virtual currencies using their PayPal accounts. S&P Kensho New Economies Volatility-Weighted Income Index, S&P Kensho Capped Electric Vehicles Index. While blockchain technology is being embraced by corporations around the world (see Forbes Blockchain 50) there has likewise been a boom in outfits that allow investors to buy, sell and store cryptocurrencies. Tax haven-based exchanges captured 34% of visits to crypto service provider sites, and approximately 86% of global trading volume. 2022 Forbes Media LLC. It stands to reason that firms required to meet regulations tend to grow at a slower rate than those that dont make those kinds of investments. The Global Crypto Adoption Index is made up of three metrics, which well explain in detail below. These factors drive growth of the cryptocurrency market in the region. A. Asia-Pacific region would grow at a highest CAGR of 14.5% during the forecast period. The S&P Kensho Global Cryptocurrency & Blockchain Equity Index is designed to measure the performance of companies involved in the whole value chain of developing distributed ledger technology and new consensus mechanisms, providing distributed ledger technology as a service and companies enabling distributed ledgers, and digital currency trading platforms. We calculate the metric by estimating total cryptocurrency received by that country, and weighting the on-chain value based on PPP per capita, which is a measure of the countrys wealth per resident. The Global Cryptocurrency price page is just one in Crypto.com Price Index that features price history, price ticker, market cap, and live charts for the top cryptocurrencies. Contact us for partnership opportunities, Fast and safe digital assets transactions, Token-to-token exchange, zero fees, no slippage, Leading platform for OTC block trades and lending services, Intraday settlement, supported by our strong risk control framework, Appreciate your assets amid volatile markets, View Asset Profit Analysis in Exchange Account page, A wide array of digital asset trading and management services to satisfy diverse trading needs, World-Class Security & Risk Management System, All-round protection of user asset with our offline storage, multi-factor encryption, and 24/7 security monitoring, Dedicated local service centers in numerous regions and countries around the world, creating a unified blockchain ecosystem for a variety of business lines. One reason that there are more than 600 crypto exchanges has to do with the industrys low barriers to entry. Bafin clarified that both the crypto exchange provider and crypto contract have to go through tests to determine whether they are exempt from these proposed regulations and need to comply with them. Asia-Pacific is expected to hold a dominant position in the cryptocurrency market globally, with the availability of advanced technology in the region along with presence of major players operating in the market. In addition, some of the leading market players are offering innovative blockchain distributed ledger technology to enhance the business efficiency of the various organizations by improving their safety and security features. The same is true for the average number of coins offered. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. We look forward to continuing to tweak the index methodology to ensure that our rankings accommodate evolutions in the market and get more accurate over time. Increase in need for operational efficiency and transparency in financial payment systems etc. Furthermore, increase in demand for cryptocurrency among banks, and financial institutions and untapped potential on emerging economies are expected to provide lucrative opportunity for the market expansion during the forecast period. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell. Sign up here to download the whole thing! We consider Class D firms like Bitfinex, Kucoin and Gate.io to be largely unregulated. The study gathered survey data from nearly 150 cryptocurrency companies and individuals, and it covers 38 countries from five world regions. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. Our data shows that growing transaction volume for centralized services and the explosive growth of DeFi are driving cryptocurrency usage in the developed world and in countries that already had substantial adoption, while P2P platforms are driving new adoption in emerging markets. This study includes cryptocurrency market analysis, and future estimations to determine the imminent investment pockets. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the cryptocurrency industry. Unlike traditional financial services, the crypto exchange industry generally lacks standards to certify a new entity before or after they start soliciting client funds. There are several hundred Class D firms globally usually very small though one usually cant tell by looking at a website. On the basis of top growing big corporations, we select top 10 players. Bitcoin, the most famous of these cryptocurrencies, has already permitted many people and companies to develop and flourish, as their source of income. We define Altcoins as all cryptocurrencies other than Bitcoin (BTC). You should conduct your own research, review, analyse and verify our content before relying on them. Class D exchanges, according to our survey, have websites with legal agreements and registrations in places like the Seychelles and Hong Kong that convey to visitors the sense that these firms are regulated, but business registration is not the same as regulatory compliance. What makes the Master of Accounting distinctive? How does the market feel about Global Cryptocurrency today? We ended up splitting the 60 companies into four groups. It is a form of currency that exists digitally only and has no central issuing or regulating authority above. boost the Cryptocurrency market growth. Stay abreast of your interest areas. Based on process, it is bifurcated into mining and transaction. Join us today. In wake of COVID-19, shutdowns of businesses have disrupted the process for receiving new hardware & upgraded equipment, which has resulted into lower mining operations during the pandemic situation. Meet and engage with 1000+ traders and investors 1 on 1. This blog is a preview of our 2021 Geography of Cryptocurrency report. See why organizations around the world trust Chainalysis. We show this in the index chart below, which shows relative change in P2P volumes for the U.S. and China compared to worldwide totals. 2022 Allied Market Research. You hereby agree that we are not providing our own opinions, advice, or recommendations. Discover more about S&P Globals offerings, S&P Kensho Global Cryptocurrency & Blockchain Equity Index (USD) Factsheet, Direxion Daily S&P Biotech Bear 3X Shares. In fact, in the last quarter of 2021, websites of dedicated crypto exchanges received 1.7 billion visits according to SimilarWeb data collected by Forbes. This is the first study to systematically investigate key cryptocurrency industry sectors by collecting empirical, non-public data. Get the latest crypto news, updates, and reports by subscribing to our free newsletter. While all three dip dramatically beginning in March 2021, the U.S. and China dip more and remain lower than worldwide totals. We also decided to create a new DeFi Adoption Index, which will be available in the coming weeks. This kind of concentration is unusual but it is reflective of the popularity of crypto derivatives - almost half of all Binance trading volume comes from five such contracts, called perpetual futures. The closer the countrys final score is to 1, the higher the rank. The regulatory boost is a way to normalize the scale because regulated entities bear additional costs for the sake of being more accountable to the investing public, something that they dont get sufficient credit for in most cases. Press Esc to cancel. However, our index takes into account hundreds of millions of transactions, so VPN usage would need to be quite widespread in order to meaningfully affect the data.