Regulation Spillovers Across Cryptocurrency Markets

16 Pages Posted: 22 Apr 2019 Last revised: 7 Oct 2019

See all articles by Nicola Borri

Nicola Borri

LUISS University - Department of Economics and Finance

Kirill Shakhnov

University of Surrey

Date Written: April 17, 2019

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.

Keywords: Bitcoin, Trading Volume, Regulation, China

JEL Classification: G14, G15, G18

Suggested Citation

Borri, Nicola and Shakhnov, Kirill, Regulation Spillovers Across Cryptocurrency Markets (April 17, 2019). Available at SSRN: https://ssrn.com/abstract=3343696 or http://dx.doi.org/10.2139/ssrn.3343696

Nicola Borri (Contact Author)

LUISS University - Department of Economics and Finance ( email )

viale Romania, 32
Rome, 00197
Italy

HOME PAGE: http://docenti.luiss.it/borri/

Kirill Shakhnov

University of Surrey ( email )

Guildford
Guildford, Surrey GU2 5XH
United Kingdom

HOME PAGE: http:// https://sites.google.com/site/kshakhnov/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
187
Abstract Views
1,524
Rank
243,018
PlumX Metrics