New BIS Report Claims Bitcoin Prices Affected By Regulatory News, Cryptos Don’t Pose Global Financial Stability Risk

The Bank of International Settlements (BIS) has released a new report where it revealed that regulatory news affects the prices of Bitcoin and other cryptocurrencies. It further said, contradicting previous reports, that cryptos don’t pose any risk to global financial stability.

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The Bank of International Settlements (BIS) has released a new report where it revealed that regulatory news affects the prices of Bitcoin and other cryptocurrencies. It further said, contradicting previous reports, that cryptos don’t pose any risk to global financial stability.

Regulatory news affect cryptocurrency prices

The new report released by the BIS has revealed that the price of cryptocurrencies is still affected by news of regulatory actions.

The BIS is comprised of 60 of the world’s top central banks from countries cumulatively making up 95 percent of global GDP.

The data presented by the BIS revealed that cryptocurrency prices do not respond to news that central banks are creating their own digital currencies or issuing warnings about cryptocurrency investments.

However, any announcement regarding the regulatory and legal status of the cryptocurrency markets and ICO tokens strongly influences token prices and trade volume. The market also responds to news to about expansion and enforcement of AML, KYC, and CFT regulations.

The report highlighted four major findings of the respond of the crypto market to regulatory actions and announcements.

In the first instance, the market was discovered to respond to any news regarding crypto ban restrictions, legal battles, and ICOs. The market also responds very strongly if the news is a direct regulatory decision or concerning the legal status of cryptocurrencies.

The report also revealed that the market responds to news of securities regulation, with the SEC Bitcoin ETF news the prominent example. (do we have a link for this? or a chart?)

The report noted that the market reacts both positively and negatively, following the nature of the news.

Secondly, regulatory news on AML/CFT measures and restrictions on crypto’s ability to be integrated with traditional financial institutions were also seen to affect market prices.

Additionally, non-specific general warnings regarding crypto investments and trading have an effect on cryptocurrency prices, though a negligible one.

The report further revealed that even though cryptocurrencies can be accessed all over the world, there is still a price difference across jurisdictions, which shows market segmentation in the industry.

Cryptos don’t pose a global financial risk

The organization changed its stance on cryptocurrencies and stated that they do not pose global financial stability risk.

The report contradicts previous statements made by the organization’s head, Agustin Carstens, who called Bitcoin a Ponzi scheme multiple times over the past few months.

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