Cryptocurrency policies impact Bitcoin trading, with bans reducing and legal recognition restricting volumes.
Authors
Srinivas Jangirala, Associate Professor, Jindal Global Business School, O. P. Jindal Global University, Sonipat, Haryana, India
Deepika Chandra Verma, Indian Institute of Management Kolkata, West Bengal, Kolkata, India
Janardan Krishna Yadav, Associate Professor, Jindal Global Business School, O. P. Jindal Global University, Sonipat, Haryana, India
Shashi Kant Srivastava, Indian Institute of Management-Sirmaur, Himachal Pradesh, Kunja, India
Anandadeep Mandal, Birmingham Business School, University of Birmingham, Birmingham, United Kingdom
Summary
Our paper empirically examines whether policy stance on Bitcoin trading affect its actual trading or not. Using data from Coin Dance on trade volumes of Bitcoins and cryptocurrency policy stance of 45 countries, we find that bans on cryptocurrencies lead to a decline in Bitcoin trade more than any other policy stances, legal (countries that consider cryptocurrency transactions in some legal ambit) and neutral (countries that are silent on the policy stance on cryptocurrencies). Further, we find that where some legal recognition has been given to some form of cryptocurrency trade, it has restricted the trade in comparison to those countries where the regulatory bodies are silent on cryptocurrencies.
Published in: Lecture Notes in Networks and Systems
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