Centralized exchanges were most visited by Americans, Koreans and Russians this year, study shows – Exchanges Bitcoin News

Residents of the United States, South Korea, and the Russian Federation were the top users of centralized exchanges this year, according to a new study. The finding comes after the spectacular crash of FTX, one of the largest such platforms, amid tightening regulations and fewer new users.

The USA is the leader in the number of CEX users, Turkey and Japan are also in the first place in terms of traffic

According to Huobi Research’s 2022-2023 Global Crypto Industry Review and Trends annual report, the United States, South Korea and Russia together account for 22% of all visits to centralized exchanges (CEX) for cryptocurrencies. The estimate is based on the top 100 CEX data on active users, trading depth, trading volume and reliability.

With a share of more than 9%, the US is the clear leader in terms of the absolute number of cryptocurrency users generating CEX traffic. The next places are occupied by South Korea, Russia, Turkey and Japan with 7.4%, 6.1%, 5.6% and 3.8%, respectively.

 Research shows that centralized exchanges were most visited this year by Americans, Koreans and Russians

In each case, the drivers are different – ​​from high unemployment and housing prices driving young people to cryptocurrency investments in South Korea and Japan, to Western sanctions for the Russians and hyperinflation for the Turks.

The authors insist that “centralized exchanges are very important in the cryptocurrency market. These exchanges are usually user-friendly and many cryptocurrency beginners start with them.” They also point out that most of the users and liquidity in the cryptocurrency market are concentrated in centralized exchanges.

However, the findings came after the collapse of FTX, one of the largest CEXs, which filed for bankruptcy protection on November 11 amid liquidity problems. The researchers call it “the event of the year after entering the current bear market” and note that it is part of a series that also includes the collapse of Terra and the bankruptcy of 3AC.

The study further shows that the total market size of CEXs has decreased significantly in 2022 compared to the previous year. The number of unique visitors decreased by 24%. “Persistently gloomy market conditions and aging assets are also discouraging existing users,” the report said. Meanwhile, new user growth slowed to 25 million from 194 million in 2021.

Rules are being tightened for centralized exchanges in major jurisdictions around the world

Huobi Research also notes that regulations on centralized cryptocurrency exchanges are tightening globally after the FTX debacle, including on-chain activities and regulators may require CEXs to publicize proof of funds or hold a certain amount of funds in reserve.

 Research shows that centralized exchanges were most visited this year by Americans, Koreans and Russians

This year, US President Biden signed an Executive Order on Ensuring the Responsible Development of Digital Assets, the EU approved Markets in Crypto Assets (MiCA) legislation, Russia is working on expanding the legal framework for cryptocurrency, and South Korea has adopted eight related regulations. .

Against this background, decentralized finance (defi) has become one of the cryptocurrency markets with rapid growth, as highlighted by the author. Despite a series of unfortunate events in this sector as well, more experienced defi users are confident of defi’s recovery and long-term value.

The US has the largest share in this segment with almost 32% of traffic. Brazil is in second place, at just over 5%, unlike the CEX market where several developed countries, namely the UK, France, Canada and Germany, see significant def traffic.

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Bankruptcy, Centralized Exchange, Centralized Exchanges, CEX, crash, Crypto, cryptocurrency, Cryptocurrencies, Cryptocurrency, Exchange, Exchanges, ftx, Huobi Research, Regulations, report, Research, research, traffic, users

Do you think centralized exchanges will continue to play a key role as entry points to the cryptocurrency space for novice users? Share your thoughts on the topic in the comment section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes to quote Hitchens: “Being a writer is more about who I am than what I do.” Along with cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.

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