Taming the blockchain beast? Regulatory implications for the cryptocurrency Market

Savva Shanaev*, Satish Sharma, Binam Ghimire, Arina Shuraeva

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)
38 Downloads (Pure)

Abstract

This paper uses a unique dataset of 120 regulatory events from five classes to test the relevance of the regulatory framework for cryptocurrency value. Time-series market-wide estimates and panel estimates for 300 individual coins and tokens show statistically and economically significant impact of anti-money laundering and issuance regulation. Tighter regulation and more active role of government decrease cryptocurrency prices, evidencing that potentially lower risks and wider adoption commonly attributed to the establishment of the regulatory framework do not compensate for respective efficiency and consumer utility losses. The market is generally efficient in reflecting regulatory information in cryptocurrency prices.

Original languageEnglish
Article number101080
JournalResearch in International Business and Finance
Volume51
Early online date9 Aug 2019
DOIs
Publication statusPublished - 1 Jan 2020

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