More than half of transactions on exchanges are manipulations – Cryptonium News

More than half of transactions on exchanges are manipulations

54.3% of sales on the largest unregulated virtual currency exchanges are money laundered each year
Most transactions on the largest unregulated virtual currency exchanges involve manipulative trading by a group of connected owners. This is according to a report by the National Bureau of Financial Research (NBER).

The authors of the note, titled “Virtual Currency Wash Trading,” Lin William Tsung of the Cornell Lab in South America, Ke Tan and Yan Yan of Tsinghua University in Beijing, and UK-based Shi Li, tested a paid database of the world’s 29 largest virtual currency exchanges. They conducted research in various jurisdictions to assess what portion of sales is called wash trading – trading where the same assets are sold repeatedly to each other.

We found that “fictitious trading on exchanges is positively correlated with the price of virtual currency in short-term opportunities. We also found that exchanges that have been in existence longer and have larger user bases are less involved in wash trading. Exchanges with less known ones fish have short-term incentives to fictitious transactions without attracting very much attention,” the document states.
Regulated virtual currency exchanges were found to have less than a 3% share of these transactions. Reselling assets to themselves in order to counterfeit exchange rates averaged 77.5% of the transactions analyzed. At the same time, it was 53.4% on “first-tier” exchanges and 81.8% on other virtual currency exchanges. Excluding them, the annual turnover of the main unregulated virtual currency exchanges reaches 54.3% in “money laundering” transactions.

Researchers also showed that crypto exchange sales in the analysis phase are on the order of trillions of dollars.

According to another report from the National Financial Research Bureau, about 70% of unregulated virtual currency exchanges falsify the power of their transactions. Unregulated exchanges include Binance, Bitfinex, Bittrex, Huobi, HitBTC, KuCoin, OKEx, and Poloniex; Liquid and Zb as well as smaller Marketplaces such as Exmo, Coinbene, Gate, as well as Liquid, Zb, Io, etc. 12 of the 16 smaller virtual currency exchanges were found to have counterfeited up to 80% of their transaction volume. All totals could not be loaded. Repeated retries…

Cryptonium Editors