The influence of European MiCa regulation on cryptocurrencies

This research investigates the relationship between impending regulatory measures, specifically the introduction of European MiCa regulations, and their influence on cryptocurrency markets. Analysing stock market responses, we highlight significant shifts in liquidity, variance, and return dynamics...

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Main Authors: Conlon, T., Corbet, S., Oxley, Leslie
Format: Journal Article
Published: 2024
Online Access:http://hdl.handle.net/20.500.11937/97483
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author Conlon, T.
Corbet, S.
Oxley, Leslie
author_facet Conlon, T.
Corbet, S.
Oxley, Leslie
author_sort Conlon, T.
building Curtin Institutional Repository
collection Online Access
description This research investigates the relationship between impending regulatory measures, specifically the introduction of European MiCa regulations, and their influence on cryptocurrency markets. Analysing stock market responses, we highlight significant shifts in liquidity, variance, and return dynamics post-MiCa-related announcements. Specifically, such announcements are associated with significant negative cryptocurrency returns and elevated liquidity. The findings reveal defined heterogeneity across different cryptocurrency sub-classes, each uniquely affected by its inherent attributes and susceptibility to regulatory changes. This work offers insights into the nature of market responses to regulatory intervention, providing an invaluable perspective on the equilibrium between cryptocurrency market behaviour and the evolving European regulatory landscape.
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institution Curtin University Malaysia
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publishDate 2024
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spelling curtin-20.500.11937-974832025-04-16T03:20:45Z The influence of European MiCa regulation on cryptocurrencies Conlon, T. Corbet, S. Oxley, Leslie This research investigates the relationship between impending regulatory measures, specifically the introduction of European MiCa regulations, and their influence on cryptocurrency markets. Analysing stock market responses, we highlight significant shifts in liquidity, variance, and return dynamics post-MiCa-related announcements. Specifically, such announcements are associated with significant negative cryptocurrency returns and elevated liquidity. The findings reveal defined heterogeneity across different cryptocurrency sub-classes, each uniquely affected by its inherent attributes and susceptibility to regulatory changes. This work offers insights into the nature of market responses to regulatory intervention, providing an invaluable perspective on the equilibrium between cryptocurrency market behaviour and the evolving European regulatory landscape. 2024 Journal Article http://hdl.handle.net/20.500.11937/97483 10.1016/j.gfj.2024.101040 unknown
spellingShingle Conlon, T.
Corbet, S.
Oxley, Leslie
The influence of European MiCa regulation on cryptocurrencies
title The influence of European MiCa regulation on cryptocurrencies
title_full The influence of European MiCa regulation on cryptocurrencies
title_fullStr The influence of European MiCa regulation on cryptocurrencies
title_full_unstemmed The influence of European MiCa regulation on cryptocurrencies
title_short The influence of European MiCa regulation on cryptocurrencies
title_sort influence of european mica regulation on cryptocurrencies
url http://hdl.handle.net/20.500.11937/97483