British Virgin Islands, the second largest cryptocurrency market in the world 20861
News
Priyanka Babu
Aug 12, 2018 at 3:30 AM

British Virgin Islands [BVI] emerged as a runner-up in the cryptocurrency market battle. The data compiled by Cryptowatch indicates that BVI is second biggest cryptocurrency market in the world, according to a report by Cryptobriefing. Cryptowatch, a real-time cryptocurrency market data provider, gathered information from the 15 biggest cryptocurrency exchanges and included trading pairs with Tether and fiat currency. The information was put out by CoinShares in its H1 2018 Crypto Report.

The BVI’s trading volume in digital assets is estimated to be $78.5 billion in Q1 and Q2. This places it behind the USA, which is the largest market for the cryptocurrency, with a whopping $83.8 billion trade volume. Japan ranks third with a trading volume of $29.2 billion in the first half of the year followed by Luxembourg valued at $27.9 billion. Russia bagged the fifth place in the crypto market competition with a six-month trade volume of $18.5 billion.

See Also: Japan’s financial regulator to impose stricter rules on cryptocurrency exchanges

Regulations have slowed down the crypto community in BVI. Slow paced regulatory process has irked the crypto community since the beginning of the year because the UK Financial Conduct Authority [FCA] failed to issue guidelines for cryptocurrency companies.  “The FCA does not regulate cryptocurrencies. For them to be brought inside our regulatory remit, would be a matter for HM Treasury. As such it is hard to have guidelines on them,” said FCA spokesman.

Pro-crypto economies like Malta, Gibraltar, and Bermuda seem to have learned from the mistake of their larger neighbors. They have established a regulatory framework with the growth of the crypto industry. Gibraltar has installed a regulatory framework while the Maltese parliament passed a DLT [Distributed Ledger Technology] bill and Bermuda is busy trying to be a cryptocurrency haven.

British Virgin Islands is described as a tax haven. The country has gotten rid of sales tax, cap gains tax, value-added tax, inheritance tax, and corporation tax. According to a Reuters report, BVI is one of the top destinations for crypto companies looking to shift their base.

Image via Shutterstock

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