Blockchain Transparency Institute (BTI), a blockchain and crypto-market analyst firm, recently released a report on wash trading on different crypto-exchanges around the world. Among many observations, the report suggests that wash trading on the top-40 exchanges in the world has fallen by 35.7% over the last 6 months.
BTI had recently launched a verified program to record accurate reporting of cryptocurrency exchange volumes, with various top exchanges in the world coordinating with the firm to reduce cases of wash trading on these exchanges.
According to the report, Kraken, Poloniex, Coinbase, and Upbit were among the cleanest exchanges in the world, with the least trading volume generated through wash trading. OKEx and Bibox were among the exchanges with the highest percentage of wash trading in the top-40 exchange list. Interestingly, 75% of the total volume on these two exchanges was generated through wash-trading. The study also notes that even if we neglect the high fake volume on these exchanges, they still feature in the list of top-20 exchanges across the world, on account of their real trading volume.
Japan and the US were the top countries with the largest number of clean exchanges, understandable given the strict regulatory policies put in place. However, strict regulations are not necessarily a driving factor for exchanges to not generate fake volumes, something evident from South Korean exchanges. South Korea also boasts of sophisticated regulatory policies. However, exchanges in the country top the list for wash trading Dash and Monero. The report suggests that more than 90% of the volumes for these two tokens are fake.
New entrants on the list
BTI has also added several new exchanges under its surveillance program, including Binance, Gemini, Bitflyer, and Indodax. The firm is verifying any exchange whose wash trading volumes are less than 10% and the exchange is willing to provide input.