Several countries have already introduced restrictions on trading of cryptocurrencies, and many more are evaluating whether to follow suit. We document an unprecedented drop in trading volume on the Chinese cryptocurrency market after a recent regulatory change by the Chinese authorities that severely restricted bitcoin trading. This paper shows how changes in domestic regulation not only have large effects on the domestic cryptocurrency market but also produce large international spillovers. Specifically, we observe a large increase in trading volume and relative bitcoin prices in exchange for Korean won, Japanese yen, and U.S. dollars, and on Chinese peer-to-peer exchanges.

Regulation Spillovers across Cryptocurrency Markets / Borri, Nicola; Shaknov, Kirill. - In: FINANCE RESEARCH LETTERS. - ISSN 1544-6123. - 36:October(2020), pp. 1-6. [10.1016/j.frl.2019.101333]

Regulation Spillovers across Cryptocurrency Markets

Nicola Borri;
2020

Abstract

Several countries have already introduced restrictions on trading of cryptocurrencies, and many more are evaluating whether to follow suit. We document an unprecedented drop in trading volume on the Chinese cryptocurrency market after a recent regulatory change by the Chinese authorities that severely restricted bitcoin trading. This paper shows how changes in domestic regulation not only have large effects on the domestic cryptocurrency market but also produce large international spillovers. Specifically, we observe a large increase in trading volume and relative bitcoin prices in exchange for Korean won, Japanese yen, and U.S. dollars, and on Chinese peer-to-peer exchanges.
bitcoin, trading volume, regulation, China
File in questo prodotto:
File Dimensione Formato  
1-s2.0-S1544612319307470-main.pdf

Solo gestori archivio

Tipologia: Documento in Post-print
Licenza: DRM non definito
Dimensione 596.71 kB
Formato Adobe PDF
596.71 kB Adobe PDF   Visualizza/Apri
1-s2.0-S1544612319307470-main.pdf

Solo gestori archivio

Tipologia: Versione dell'editore
Licenza: DRM non definito
Dimensione 653.79 kB
Formato Adobe PDF
653.79 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/189684
Citazioni
  • Scopus 13
  • ???jsp.display-item.citation.isi??? 10
social impact