According to a recent report from blockchain analytics firm Chainalysis, Latin America has a distinct inclination toward centralized exchanges when compared to the rest of the world, as opposed to decentralized exchanges.
Published on October 11, Chainalysis stated that Latin America has the seventh-largest crypto economy in the world, trailing closely behind the Middle East and North America (MENA), Eastern Asia, and Eastern Europe.
However, it notes that crypto users in Latin America strongly favor using centralized exchanges:
Latin America shows the highest preference for centralized exchanges of any region we study, and tilts slightly away from institutional activity compared to other regions.
Furthermore, in certain countries within the region, the distribution of crypto activity by platform type is significantly skewed towards centralized exchanges when compared with the global average.
The worldwide average for preferences regarding crypto platforms stands at 48.1% for centralized exchanges, 44% for decentralized exchanges, and 5.9% for other decentralized finance (DeFi) activities.
However, in Venezuela, the preference for centralized exchanges is significantly…
