More than half of the bitcoin held by crypto firms for their customers has moved to offshore and international exchanges due to unclear regulations in the United States.

BTC reserves on U.S.-based crypto exchanges are down to 2017 levels, as they are being lost to non-U.S. platforms. The decline in BTC reserves on American exchanges is due to the absence of a clear rule book for the crypto industry, which has driven crypto firms to offshore locations with comprehensive regulations. Ether reserves have also been on a steady decline, with about 56% of ETH on crypto exchanges held outside the United States.