Cryptocurrency Market Reactions to Regulatory News

Auer, Raphael; Claessens, Stijn

doi:10.2139/ssrn.3582324

Cited by 13 publications

(19 citation statements)

References 1 publication

(1 reference statement)

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“…Ultimately, it may be argued that there is no elixir for jurisdictional arbitrage (Nabilou, 2019) but, contrary to the somewhat extreme view that there is no legal solution in this context (Langenbucher, 2019), there, at least, two alternative remedies, suggested above, that may, in fact, limit it. While harmonisation of regulatory rules is, practically, a difficult task, commentators still propose a co-ordination approach at international level (Auer and Claessens, 2018; Cuervo et al , 2019; World Economic Forum, 2021) to minimize any differences of national regulatory frameworks, which lie at the core of the problem. Here, the FATF, a successful transgovernmental network, and its Recommendations could serve as an example setting a precedent for any future international discussion about harmonising, at least, certain aspects of cryptoasset regulation and calibrating appropriate legal instrument(s) for that purpose.…”

Section: Discussionmentioning

confidence: 99%

Jurisdictional arbitrage: combatting an inevitable by-product of cryptoasset regulation

Draganidis

2022

JFRC

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Purpose This paper aims to provide an overview of different issues related to jurisdictional arbitrage found in general regulatory arbitrage literature and their projection to the specific area of cryptoasset regulation. Design/methodology/approach By distinguishing any parallel, analogous and neighbouring concepts, this paper attempts to clarify the notion of jurisdictional arbitrage. By discussing certain aspects and effects of three regulatory regimes, BitLicense, 5th Anti-Money Laundering Directive (AMLD5) and the European Commission’s Proposal for a Regulation on Markets in Crypto-assets (MiCa), it makes clear that national/State/regional policymakers have already failed to create arbitrage-proof regulatory frameworks by acting exclusively within their jurisdictional limits. Against this background, this paper discusses briefly regulatory competition and international harmonisation as alternative solutions to inappropriate and ineffective national/regional legislative approaches. Findings Based on a structured theoretical analysis, this paper reaches three important findings. First, academics, international bodies and other commentators use inaccurately the general concept of “regulatory arbitrage” to refer to the specific problem of jurisdictional arbitrage creating in this way an interpretative confusion; second, commentators confuse jurisdictional conflicts with jurisdictional arbitrage; third, the solutions to this regulatory problem can actually be found in its underlying causes. Originality/value To the best of the author’s knowledge, this is the first specific-issue paper on jurisdictional arbitrage in the context of cryptoasset regulation and aims to trigger further academic discussion on this evolving phenomenon and inform the development of future cryptoasset regulation combatting this problem.

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Section: Discussionmentioning

confidence: 99%

Jurisdictional arbitrage: combatting an inevitable by-product of cryptoasset regulation

Draganidis

2022

JFRC

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“…In addition, some governments view cryptocurrency as a money laundering scheme which makes it prohibited. The anti-laundering policies and legal frameworks on cryptocurrencies have a significant influence on how the new development may move in the future [6]. The regulations may influence how the crypto assets are obtained and the process of exchange from one user to the other.…”

Section: Government Regulationsmentioning

confidence: 99%

The Direction of the Cryptocurrency: Current and Future Perspectives

Tang

2024

HBEM

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The development of technology has brought multiple changes in the economy, one of them being how people purchase goods and services. Technology has improved online business and how payments are made through digital means. Initially, people used to make payments using their credit cards, but the invention of digital currency has eased the transaction process. Cryptocurrency has emerged as the newest way for people use to make transactions. The majority prefers cryptocurrency since it is faster and does not require intermediaries like the traditional mode of payment. However, various issues have emerged that may influence its development. Security issues and scamming have become rampant, which has discouraged investors. In addition, cryptocurrency experiences huge volatility, which may discourage people from investing since failure to have previous data may made the investors fail to predict the prices. Fraud and the presence of scammers have discouraged people from investing since they fear losing their fortune from these individuals. The continuous adoption of cryptocurrency has made the organisation invest in cryptocurrency to diversify its portfolio risks.

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“…Blockchain technology was created with the goal of developing a decentralized system that offers enhanced security, privacy and transparency, without the need for third-party regulation (Al-Amri et al, 2019). Cryptocurrencies such as Bitcoin operate on a decentralized network of computers, which reduces transaction costs and improves efficiency (Auer and Claessens, 2018). While cryptocurrencies may not be as efficient as traditional currencies in terms of information dissemination, their efficiency is improving over time (Diaconas ¸u et al, 2022).…”

Section: Benefits Of Using Cryptocurrency and The Adoption Of Cryptoc...mentioning

confidence: 99%

Factors influencing the adoption of cryptocurrency in Bangladesh: an investigation using the technology acceptance model (TAM)

Islam,

Rana,

Saha

et al. 2023

TECHS

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PurposeUsing the technology acceptance model (TAM), this study investigates factors influencing the adoption of cryptocurrency in Bangladesh.Design/methodology/approachData were collected from 346 members of the general public through a structured web survey using snowball sampling. Structural equation modeling was used to analyze the data and assess the reliability and validity of the measurement model.FindingsThe results show that knowledge of cryptocurrency, benefits of use (perceived usefulness), attitude and challenges all have a significant impact on the adoption of cryptocurrency.Research limitations/implicationsThis study was conducted in a single country, relied on self-reported data and used a cross-sectional design, which limits the ability to draw causal inferences. Future research could explore the factors that influence the adoption of cryptocurrency in different countries and regions and incorporate additional variables to provide a more comprehensive understanding of the drivers of intention to use cryptocurrency.Originality/valueThis study contributes to understanding the factors driving the adoption of and intention to use technology-based services, providing insights that can inform the design and implementation of future technology-based services.

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Cryptocurrency Market Reactions to Regulatory News

Cited by 13 publications

References 1 publication

Jurisdictional arbitrage: combatting an inevitable by-product of cryptoasset regulation

Jurisdictional arbitrage: combatting an inevitable by-product of cryptoasset regulation

The Direction of the Cryptocurrency: Current and Future Perspectives

Factors influencing the adoption of cryptocurrency in Bangladesh: an investigation using the technology acceptance model (TAM)

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