Residents of the US, South Korea and Russia According to new survey And the Commonwealth was the most frequent user of centralized exchanges this year. The findings come after one of the largest such platforms, FTX, crashed dramatically amid tighter regulations and fewer new users.
US leads CEX users, Turkey and Japan top traffic
US, South Korea, and Russia together account for 22% of all visits Huobi Research According to the 2022-2023 “Global Crypto Industry Overview and Trends” annualreportproduced by the Centralized Exchanges (CEX) of cryptocurrencies. This estimate is based on his top 100 CEX data on active users, trade depth, trade volume, and reliability.
With over 9% share, the United States is the leader in terms of absolute number of cryptocurrency users generating CEX traffic. South Korea, Russia, Turkey and Japan are next with 7.4%, 6.1%, 5.6% and 3.8% respectively.
Factors vary from case to case – Western side to Russians as high unemployment and housing prices push young Koreans and Japanese to invest in crypto Up to the sanctions of the countries and hyperinflation against the Turks.
The authors say, “Centralized exchanges are essential in the cryptocurrency market. These exchanges are usually user-friendly and that’s where many crypto newbies start.” , also points out that most of the crypto market users and liquidity are concentrated in centralized exchanges.
However, the findings came in the aftermath of the crash of FTX, one of the largest CEXs to file for bankruptcy protection on Nov. 11 amid liquidity issues. The researchers called it “the event of the year in the current bear market” and said it was part of a chain of events that included the collapse of Terra and the bankruptcy of 3AC.
The study further revealed that the overall market size of CEX will further decline significantly in 2022 compared to the previous year. The number of unique users he has decreased by 24%. “Both the continued pessimistic market conditions and depreciating assets are depressing existing users,” the report elaborates. At the same time, the growth of new users decreased from 194 million in 2021 to 25 million in 2021.
Major jurisdictions around the world tighten regulation of centralized exchanges
Huobi Research also mentions regulations on centralized cryptocurrencies. After FTX bankruptcy, exchanges have tightened globally, including on-chain activity, with regulators requiring CEX to publish proof of funds or to keep funds in reserves.
This year, US President Biden signed a presidential decree to ensure the responsible development of digital assets, and the EU decided to open up the cryptocurrency market. (MiCA) law, Russia has been working on it. To expand the crypto legal framework, South Korea has passed eight related regulations.
Against this backdrop, decentralized finance (defi) has become one of the fastest growing cryptocurrency markets. That sector has also seen a string of unfavorable incidents, but more experienced defi users are confident in defi’s recovery and long-term value.
With nearly 32% of traffic, the US also has the largest share in this segment. Brazil is her second with just over 5%, followed by several developed countries, unlike the CEX market.
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