Most of my students follow a recognised exam syllabus, either Trinity College or ABRSM, but taking official exams isn't compulsory - some students choose to take an "in-studio exam" instead.
After not entering any students for exams last year, I am offering to do this again this year. Most years at least a dozen students enter for formal exams, with about 40% of those receiving Distinction.
During the past two years, a number of online options for taking exams have arisen. I would be happy to explore these with students who show interest.