The report noted that KYC and AML standards for exchanges have improved significantly over the last four months.
Of the 160 cryptocurrency exchanges analyzed in a recent report, half control about 85% of the total market share.
The exchanges that the analytics firm rated as “top tier” received 13% of the market share from October 2020 to January, according to a cryptocurrency research report published today. It held the market share of these 84 exchanges at around 74%, with more than $ 1 trillion in assets.
However, Cryptocompare said that this percentage rose to 85% for January. Given that the total market capitalization of all cryptocurrencies at the time of publication is $ 1.47 trillion, the market share of these exchanges may now exceed $ 1.2 trillion.
The report attributed the increase in market share to retail and professional crypto traders as Bitcoin (BTC) prices rose $ 20,000 in late December 2020 and $ 30,000 in January.
However, one of the more important reasons for the increased market share may be the cryptocurrency rating of 16 more exchanges as “top tier” compared to October 2020 – a designation meant instead of measuring the exchange’s risk level. Is for superiority. The firm said that many exchanges are now complying with “hardened” know their client and anti-money Laundring requirements. Many are also providing increased transparency and improving their overall operating condition.
According to CryptoCompare results, 44% of the 160 exchanges analyzed the ability to “query full historical business data via a public API endpoint” compared to 37% in July 2020. In addition, the percentage of exchanges rated as having a “bad or insufficient” KYC system according to Ciphertress fell from 44% in July 2020 to 33% in January.
The report specifically mentions Coinbase, Gemini, Bitstamp, Kraken, ITBit and Luno as the “lowest risk exchanges”. Others such as Binance, FTX, OakCoin, Huobi Global and Bitfinex are listed in the next “lower level” category.