News about regulatory activities exerts a significant influence on cryptocurrency prices, the Bank of International Settlement (BIS) said in an analysis published on Sunday. The reason is that virtual coins are generally within reach of national laws as they rely on financial institutions, which are overseen by various regulatory bodies, BIS explained.
The paper is co-authored by Raphael Auer, an economist at the monetary and economic department, and Stijn Claessens, head of the financial stability policy division. The duo analyzed 151 regulatory events and concluded that news about a general ban on cryptocurrencies and their treatment under existing securities laws had a negative impact on prices. Reports about tackling money laundering and terrorist financing problems linked to cryptos also led to price plunges.
To illustrate these findings, Claessens and Auer gave two examples, the first being the March decision of the US Securiti...
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