Cryptocurrency market reactions to regulatory news

Raphael Auer, Stijn Claessens

Cryptocurrencies are often thought to operate out of the reach of national regulation, but in fact their valuations, transaction volumes and user bases react substantially to news about regulatory actions. The impact depends on the specific regulatory category to which the news relates: events related to general bans on cryptocurrencies or to their treatment under securities law have the greatest adverse effect, followed by news on combating money laundering and the financing of terrorism, and on restricting the interoperability of cryptocurrencies with regulated markets. News pointing to the establishment of specific legal frameworks tailored to cryptocurrencies and initial coin offerings coincides with strong market gains. These results suggest that cryptocurrency markets rely on regulated financial institutions to operate and that these markets are segmented across jurisdictions.

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Year of publication:	April 2020
Authors:	Auer, Raphael A. ; Claessens, Stijn
Publisher:	Munich, Germany : CESifo, Center for Economic Studies & Ifo Institute
Subject:	digital currencies \| cryptocurrencies \| bitcoin \| ethereum \| distributed ledger technology \| regulation \| financial markets \| event studies \| Virtuelle Währung \| Virtual currency \| Ankündigungseffekt \| Announcement effect \| Blockchain \| Elektronisches Geld \| Electronic money \| Finanzmarkt \| Financial market \| Börsenkurs \| Share price \| Regulierung \| Regulation \| Bargeldloser Zahlungsverkehr \| Noncash payments \| Ereignisstudie \| Event study \| Welt \| World

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Extent:	1 Online-Ressource (circa 19 Seiten) Illustrationen
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. no. 8228 (2020)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/216624 [Handle]
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; E51 - Money Supply; Credit; Money Multipliers ; F31 - Foreign Exchange ; G12 - Asset Pricing ; G28 - Government Policy and Regulation ; G32 - Financing Policy; Capital and Ownership Structure ; G38 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

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