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What threats are cryptocurrency exchanges currently in difficulty?

January 20, 2019 at 13:14 // News

Exchanges of digital currencies have also had a lot of problems during this period.

The cryptography market has been quite bearish throughout 2018. Many investors have lost confidence in cryptography and have renounced commerce. Exchanges of digital currencies have also had a lot of problems during this period. Apart from low trading volumes and inadequate user activity, what are the other threats that cryptographic exchanges face?

Are Crypto exchanges condemned?

Cryptographic exchanges, which were exploding during the bull market, had to face an unpleasant reality and survive under the conditions of a bear market. As for the future, the situation could become even more difficult, as competition for a client will only increase.

According to the Blockchain Transparency Institute (ITV), which published its report in November, only four digital currencies have had more than 100,000 active users. The ITV has defined "active users" as the average number of registered users per day.

As we can see from the image above, Coinbase had the most daily users, with 421.909 in November. Then Binance followed by 312,801 active users. Two last exchanges of the first 4 were Okex and Huobi with 105.609 and 101.873 respectively. However, in the December report there remained only two cryptographic exchanges such as those with over 100,000 active users. Coinbase had 323.409 and Binance was visited by 361.458 users every day.

The regulation can ruin everything

Let's take a look at a scenario where countries try to prohibit citizens from using foreign encryption platforms. If this happens, consolidation will surely be the most obvious solution not only at the national level but also at the continental level.

Under these circumstances, countries with strict policies on fintech and criptos could leave cryptographic exchanges without any activity in the future. Although it may seem impossible, since most lawmakers and governments have shown no interest or bland support for virtual currencies, there are examples of countries that have interrupted their local crypts.

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