Bank for International Settlements: Cryptocurrency prices are affected by news of regulation

The Bank for International Settlements (BIS) released a report analyzing cryptocurrency price reactions to regulation.  The report concludes with four main findings:

  1. The market responds most strongly to news events regarding the legal status of cryptocurrencies. 
  2. Regulatory news regarding anti-money laundering measures and limits on the interoperability of cryptocurrencies with the regulated financial system adversely impacts cryptocurrency markets.
  3. Authorities' unspecific warnings have no effect on prices
  4. Large price differences sometimes prevail across different jurisdictions which suggests some market segmentation.

(Source: BIS)

About Author

Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi

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