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Taming the blockchain beast? Regulatory implications for the cryptocurrency Market

Savva Shanaev, Satish Sharma, Binam Ghimire and Arina Shuraeva

Research in International Business and Finance, 2020, vol. 51, issue C

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.

Keywords: Cryptocurrency; Cryptocurrency regulation; Anti-money laundering; Event studies (search for similar items in EconPapers)
JEL-codes: C32 C33 E42 G14 G18 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531919305963

DOI: 10.1016/j.ribaf.2019.101080

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