The Seychelles is rapidly emerging as the world’s cryptocurrency exchange hub, moving USD $36 billion worth of Bitcoin (BTC) across borders during 2019.
Despite having a population of under 100,000, the tiny archipelagic island nation in the Indian Ocean is now home to a number of crypto exchanges and companies – having lured them with low taxes and light touch regulation.
According to data from blockchain analysis company Crystal, in 2019 the Seychelles handled more BTC than any other country, by a long way, receiving $15.83BN and sending $20.83BN.
The United States was a distant second, receiving $9.66BN and sending $8.56BN, while another tiny island tax haven, Malta, came in third with $4.88BN received and $5.55BN sent, just pipping the UK which received $4.12BN and sent $3.28BN.
In terms of trade routes, the most active were Seychelles – EU, Seychelles – US, and Seychelles – South Korea, each moving over $2BN.
In all, 12 Seychelles-based crypto exchanges received $15.83BN worth of BTC from foreign exchanges, and sent $20.83BN. It should be noted that Crystal did class Binance (BNB) as a Seychelles-based exchange for its report, though many consider it to be based in Malta.
The Seychelles’ approach to regulation isn’t going down well with everyone. As we’ve previously reported, the country is home to HDR Global Trading, parent company of BitMEX – which has been accused of racketeering, money laundering, wire fraud and unlicensed money transmission.
AYO.NEWS says:
With many jurisdictions, especially in Europe, North America, Asia, and Oceania, drastically tightening crypto regulations, more companies are looking for less stifling homes. While some might not like this, it does provide an incredible economic opportunity for small and/or developing nations.
Indeed, in January this year, Dutch crypto derivative exchange Deribit relocated to Panama, saying that new European Union AML rules would “put too high barriers for the majority of traders – both regulator and cost-wise.”
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