Taming the blockchain beast? Regulatory implications for the cryptocurrency market.

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

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.

Citation

SHANAEV, S., SHARMA, S., GHIMIRE, B. and SHURAEVA, A. 2020. Taming the blockchain beast? Regulatory implications for the cryptocurrency market. Research in international business and finance [online], 51, article number 101080. Available from: https://doi.org/10.1016/j.ribaf.2019.101080

• Journal Article Type: Article
• Acceptance Date: Aug 8, 2019
• Online Publication Date: Aug 9, 2019
• Publication Date: Jan 31, 2020
• Deposit Date: Aug 19, 2024
• Publicly Available Date: Aug 19, 2024
• Journal: Research in international business and finance
• Print ISSN: 0275-5319
• Electronic ISSN: 1878-3384
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 51
• Article Number: 101080
• DOI: https://doi.org/10.1016/j.ribaf.2019.101080
• Keywords: Cryptocurrencies; Currency markets; Financial regulation
• Public URL: https://rgu-repository.worktribe.com/output/2439426
• Related Public URLs: https://rgu-repository.worktribe.com/output/2439546 (Working Paper)