The University of Cambridge’s Centre for Alternative Finance (CCAF) has unveiled the third edition of its Global Cryptoasset Benchmarking Study, offering a comprehensive look into the evolving landscape of the digital asset industry. This latest report draws insights from data collected from over 280 cryptoasset firms across more than 50 countries, shedding light on user growth, regulatory compliance, energy usage in mining, institutional adoption, and the rising prominence of stablecoins.
As the crypto ecosystem matures, this study serves as a vital resource for policymakers, investors, and industry participants seeking to understand global trends and emerging best practices.
Explosive Growth in Crypto Users and Accounts
One of the most striking findings from the report is the rapid expansion in user adoption. By the third quarter of 2020, cryptoasset platforms are estimated to have reached 101 million unique users, with 191 million total trading accounts in operation. This marks a significant leap from 2018, when verified trading users stood at just 35 million.
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This surge reflects growing public interest in digital assets, driven by increased accessibility, mainstream media coverage, and financial innovation such as decentralized finance (DeFi) and non-fungible tokens (NFTs). The data also suggests that while individual ownership is rising, many users maintain multiple accounts across different platforms—indicating a fragmented but highly active market.
Institutional Adoption Gains Momentum
The report highlights a notable shift in user demographics: institutional and commercial clients now represent 30% of total users among North American and European crypto service providers. This contrasts sharply with adoption rates in other regions—only 16% in Asia-Pacific and 10% in Latin America.
This divergence may reflect differences in regulatory clarity, market maturity, and investor culture. In mature markets, clearer frameworks around custody, taxation, and reporting have encouraged traditional financial institutions to enter the space through vehicles like crypto ETFs, custodial services, and direct investment.
Meanwhile, emerging markets lag due to regulatory uncertainty and limited infrastructure. However, their potential remains high, especially as cross-border payment solutions and financial inclusion initiatives gain traction using blockchain technology.
Strengthening Compliance: KYC/AML Adoption Soars
Regulatory compliance has become a cornerstone of legitimate crypto operations. Between 2018 and 2020, the share of crypto companies conducting no KYC (Know Your Customer) checks plummeted from 48% to just 13%. This dramatic shift underscores the global impact of standards set by the Financial Action Task Force (FATF), particularly the “Travel Rule,” which mandates the sharing of sender and recipient information for crypto transactions.
Increased compliance not only enhances transparency but also fosters trust between regulators and industry players. As governments seek to prevent money laundering and terrorist financing, adherence to KYC/AML protocols has become a prerequisite for licensing and long-term sustainability.
Workforce Growth Slows Amid Market Maturation
Following the explosive market rally in late 2017, the crypto industry experienced rapid hiring. However, workforce expansion has since cooled. In 2019, full-time equivalent (FTE) employee growth slowed to 21% year-on-year, signaling a transition from speculative expansion to sustainable scaling.
This deceleration reflects a broader trend: the industry is moving beyond hype-driven growth toward operational efficiency, profitability, and long-term strategy. Companies are now prioritizing talent in compliance, cybersecurity, product development, and risk management—roles essential for navigating an increasingly regulated environment.
Mining Sustainability: A Step Toward Greener Energy
Environmental concerns surrounding proof-of-work (PoW) mining have long been a point of debate. The CCAF report offers encouraging data: on average, 39% of PoW mining activity is powered by renewable energy, primarily hydropower.
Energy costs are a major component of mining operations, prompting firms to locate facilities near low-cost, sustainable power sources. Regions with abundant hydroelectric, geothermal, or wind resources—such as parts of Canada, Iceland, and Sichuan in China—have become mining hubs.
While fossil fuels still play a significant role globally, the trend toward greener energy signals a growing awareness within the industry about environmental responsibility. Continued innovation in energy-efficient consensus mechanisms and carbon offset programs could further reduce the sector’s ecological footprint.
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Stablecoins Surge in Popularity and Utility
Stablecoins—digital assets pegged to fiat currencies—are becoming integral to the crypto economy. Between 2018 and 2020:
- The share of service providers supporting Tether (USDT) rose from 4% to 32%.
- Support for non-Tether stablecoins (such as USDC, DAI, and BUSD) jumped even more dramatically—from 11% to 55%.
This growth aligns with increasing transaction volumes denominated in stablecoins, which offer price stability compared to volatile cryptocurrencies like Bitcoin or Ethereum. They are widely used for trading, remittances, lending, and as on-ramps/off-ramps between traditional finance and crypto ecosystems.
The diversification beyond Tether also indicates growing confidence in regulated alternatives backed by audited reserves—a development that enhances transparency and reduces systemic risk.
Off-Chain Trading Dominated by Fiat-Crypto Pairs
Despite advances in decentralized exchanges (DEXs), off-chain trading remains dominated by fiat-to-crypto transactions. This means most users interact directly with centralized platforms to buy or sell digital assets using traditional currencies.
This pattern suggests that while DeFi is growing, mainstream adoption still relies heavily on trusted intermediaries that provide liquidity, ease of use, and regulatory compliance. For now, centralized exchanges continue to serve as the primary gateway into the crypto world.
Frequently Asked Questions (FAQ)
Q: What is the Global Cryptoasset Benchmarking Study?
A: It’s a comprehensive research report published by the University of Cambridge’s Centre for Alternative Finance (CCAF), analyzing trends across the global crypto industry based on data from hundreds of service providers.
Q: How many users do crypto platforms have globally?
A: As of Q3 2020, platforms served approximately 101 million unique users and hosted 191 million trading accounts.
Q: Are more institutions investing in crypto?
A: Yes—commercial and institutional users make up 30% of clients at North American and European firms, though adoption is lower in other regions.
Q: Is crypto mining environmentally sustainable?
A: On average, 39% of proof-of-work mining uses renewable energy, primarily hydropower. Many operators are actively seeking low-cost green energy sources.
Q: Why are stablecoins becoming more popular?
A: Stablecoins offer price stability and are widely used for trading, payments, and bridging traditional finance with blockchain systems. Support for regulated options like USDC has grown rapidly.
Q: Are crypto companies improving compliance?
A: Yes—firms performing no KYC checks dropped from 48% in 2018 to 13% in 2020, reflecting stronger adherence to global AML standards.
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Final Thoughts
The CCAF’s Global Cryptoasset Benchmarking Study paints a picture of an industry undergoing profound transformation—from speculative beginnings to structured growth marked by regulation, sustainability efforts, and institutional integration. As digital assets become increasingly embedded in global finance, understanding these foundational trends will be critical for anyone navigating the future of money.
Core keywords naturally integrated throughout: cryptoasset, blockchain, stablecoins, institutional adoption, KYC/AML, proof-of-work mining, renewable energy, digital finance.