Cryptocurrency Prices Highly Correlated to Regulatory Action: BIS Report

New research has found that, despite the popular idea that cryptocurrencies operate generally outside the reach of national regulators, regulatory actions still have a huge impact on crypto markets. The research is presented in a report by the Bank for International Settlements (BIS), an organisation owned by 60 of the world’s central banks from countries cumulatively making up 95 percent of global GDP.

In the report, the data presented shows that while markets do not generally respond to news about central banks creating their own digital currencies or issuing general non-specific warnings about cryptocurrencies, they show a significant response to regulatory announcements regarding the legal status of cryptocurrencies and initial coin offering (ICO) tokens, as well as possible expansion and enforcement of AML, KYC, and CFT regulations.

According to the report, four major findings were established about the response of crypto markets to regulatory actions and…