The Bank for International Settlements (BIS) published a report stating that the crypto market regulation news continues to affect the crypto prices.
Cryptocurrencies are thought to be beyond national regulation, but in fact their prices, trading volumes and user numbers react significantly to news about possible regulatory actions #Bitcoin #Cryptocurrencies #FinancialRegulation https://t.co/cSSBYTasja pic.twitter.com/2ZW5JECr01
— Bank for Intl Settl. (@BIS_org) September 23, 2018
“Although it is generally assumed that the working area of the cryptocurrency is outside the national regulation, in fact, their price, transaction volumes, and even the users themselves, depend on the regulatory news,” noted the authors of the report Raphael Auer and Steen Classens.
As an example, representatives of BIS led the market reaction to the SEC’s refusal of the application of the Winklwos brothers to create bitcoin-ETF. Then in a few minutes, the price of bitcoin fell by 16%. A similar reaction of the market was observed against the backdrop of tightening measures to regulate the cryptocurrency by the Japanese Financial Services Agency (FSA) in the context of combating money laundering.
To confirm their theses, BIS presented graphs of the dynamics of bitcoin prices against the background of the corresponding events.
According to the authors of the report, the reason for such a strong influence of news on regulation on cryptocurrencies is the dependence of digital money on a variety of institutions, including banks.