Malta and Belize are currently reported to be leading the cryptocurrency exchange industry in terms of trade volume. On the other hand, Russia leads the way in over-the-counter (OTC) crypto transactions with over 2,000 bitcoin being traded weekly in Moscow.
Local reports estimate that daily crypto trading figures in the country’s capital reach $50 million with volumes generally ranging between $10 and $20 million. However, actual figures are hard to come by because of the decentralized nature of the sector.
The Unique OTC Market in Russia
Cryptocurrency trading in Russia has grown significantly since last year in correlation with the industry boom that saw digital currencies reach unprecedented levels in value. Presently, government regulation in regards to OTC trading in the country is largely murky, causing a significant portion of the trades to be undertaken in fiat currencies like US dollars and Rubles.
Individual traders and shops offer a variety of enticing deals to clients including fast, anonymous transactions and trades in numerous fiat currencies. According to local reports, the current Russian OTC marketplace is said to resemble its 90s forex market in which deals were undertaken right on the streets. No background checks are done, and one does not need to declare the origin of the funds.
Most traders reportedly use peer-to-peer trading platforms such as LocalBitcoins. The allure of the Russian OTC market is said to reside in its innominate nature where anyone with cash or crypto, regardless of their background, can trade.
This is in sharp contrast to the U.S. OTC market where trading firms implement stringent know-your-customer (KYC) policies and follow strict anti-money laundering (AML) laws.
The Growth of the Malta, Belize Exchange Markets
While Russia, China, and the United States dominate the OTC market, the Malta and Belize cryptocurrency exchange sectors are unrivaled. In Malta, daily trade volumes average over a billion dollars, while Belize’s exchange industry trades approximately $700 million within the same duration. According to data compiled by Morgan Stanley, daily cryptocurrency trades in Malta, Seychelles, and Belize exceed $2.6 billion.
