Study: Centralized Crypto Exchanges Enjoy Great Popularity in Latin America

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A recent study by Chainalysis found that centralized exchanges (CEX) are the preferred option for Latin American cryptocurrency investors. In comparison, decentralized platforms (DEX) are not as popular in the region.

While the Latin American crypto market is still relatively smaller than other regions such as North America, the Middle East, Southeast Asia, and Eastern Europe, analysts note that institutional investors from South America are not as active as those from other regions like hedge funds and financial companies.

This could be attributed to the lack of a regulatory framework for the blockchain industry, which makes large capital entry into digital assets a challenge.

The study also revealed that almost 50% of cryptocurrency transactions in the region are conducted on centralized exchanges, while DEX accounts for about 44% and other DeFi ecosystems make up 6% of token transactions.

In a separate report, Chainalysis found that the fastest rates of Bitcoin adoption are seen in countries like Vietnam, Nepal, and Indonesia, among others in Asia and Africa.