According to the CryptoQuant report, the decline in Bitcoin reserves on U.S. crypto exchanges can be attributed to the reluctance of these platforms to bear the potential risks associated with unclear regulations.
The report highlights that more than 50% of Bitcoin, the world’s largest cryptocurrency by market capitalization, has been moved to offshore and international exchanges. These exchanges, operating in jurisdictions with clearer regulatory frameworks, are seen as more secure options for crypto firms and their clients.
The move to offshore exchanges reflects the growing concern within the crypto industry about the potential impact of regulatory actions on digital assets. By relocating Bitcoin reserves to jurisdictions with well-defined regulations, crypto firms aim to mitigate the risks posed by regulatory uncertainty. This strategy not only protects client assets but also ensures continuity of business operations in the face of potential regulatory crackdowns.
