Cryptocurrency comovements and crypto exchange movement: The relocation of Binance

Mustafa Disli, Fatima Abd Rabbo, Thibault Leneeuw and Ruslan Nagayev

Finance Research Letters, 2022, vol. 48, issue C

Abstract: Binance, the largest cryptocurrency exchange by traded value, relocated from Hong Kong (origin market) to Malta (destination market). This study exploits this relocation event by examining the comovement of Binance's native token with the native tokens of other cryptocurrency exchanges in the origin and destination markets. Using multivariate regression analysis, our results show that Binance experienced a significant decline in comovement with its origin market after moving to Malta. The results are less evident for the destination market; however, an increase in comovement immediately after the relocation of Binance is notable.

Keywords: Exchange relocation; Binance; Altcoins; Bitcoin; Comovement (search for similar items in EconPapers)
JEL-codes: C30 E59 G29 G38 O33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002379

DOI: 10.1016/j.frl.2022.102989

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