Thanks to clearly defined legal regulations in Malta now accounts for the largest share of world trade cryptocurrencies. On April 29 announced the publication Business Insider, citing a recent study conducted by specialists of Morgan Stanley.

A team of experts from Morgan Stanley, led by analyst Dr. Bus Shah, researched cryptocurrency exchanges across countries, as well as trade cryptocurrencies. The experts relied on data from Coinmarketcap and registration information listed on the websites of the respective exchanges.

The top five countries with the largest volume of trade cryptocurrencies included Malta, Belize, Seychelles, USA and South Korea. Countries in which it operates, most of all cryptocurrency exchanges — is the United Kingdom, Hong Kong, USA, Singapore and Turkey.

The researchers noticed the following paradox: Malta and Belize took first and second place by volume cryptocurrency trading across the planet, but only 22 th and 24 th places respectively for the number of registered cryptocurrency companies.

According to experts, the apparent contradiction is explained by the fact that these two small countries are home to two of the world’s largest (by trading volume) exchanges. So, in March of this year Binance stated willingness to transfer operations from Hong Kong to Malta, and Belize was officially second in the world by trading volume (according to Coinmarketcap) exchange OKEx. Shah says:

The largest exchange Binance announced plans to open in Malta headquarters. If you do not consider this company, that Malta will fall sharply in the list.

Among other curious discoveries of the Morgan Stanley team — the fact that the United Kingdom, despite a record number of exchanges in its jurisdiction, can boast only 1% of global trade volume.

According to Shah, for the cryptocurrency exchanges one of the main factors in deciding in which country to register, is the nature of local legal norms. According to her, to draw exchange, the legislative framework is not required to be liberal. Rather, rules should be clearly spelled out to the exchange knew what to expect and was able to plan.

Shah says:

Clear, but also attractive the law of the country encourages the exchange to the choice in its favor. We are talking about the norms governing the circulation of digital tokens or assets, a policy to counter money laundering, and taxation. Legislative clarity is one of the factors of attractiveness for businesses seeking clear rules of the game allow you to plan for the future because they know they can count on. Low taxes is good.

This assumption is confirmed by the experience of Malta, whose authorities have recently announced that they intend to create an environment conducive to cryptocurrency mode. Research data from Morgan Stanley suggests that the creation of the Maltese government a sound legal framework for the circulation of digital currencies has generated the expected benefits.