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Uncertainty in the financial regulation policy and the boom of cryptocurrencies

Author

Listed:
  • Syed Ali Raza

    (Audencia Recherche - Audencia Business School)

  • Komal Akram Khan
  • Khaled Guesmi
  • Ramzi Benkraiem

Abstract

The purpose of this research is to assess the impact of uncertain financial regulatory policy on the volatility of cryptocurrencies using the GARCH-MIDAS model. Further, we aim to identify whether the uncertainty in the financial regulation policy results in the boom of cryptocurrencies. The study's findings revealed that financial regulation policy uncertainty is negatively and significantly associated with the volatility of cryptocurrencies. Thus, an increase in uncertainty will ultimately decline the volatility. Furthermore, it implies that rapid fluctuations in the uncertainty of financial regulation policy strengthen the cryptocurrency market.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Syed Ali Raza & Komal Akram Khan & Khaled Guesmi & Ramzi Benkraiem, 2023. "Uncertainty in the financial regulation policy and the boom of cryptocurrencies," Post-Print hal-03981910, HAL.
    • Handle: RePEc:hal:journl:hal-03981910
    DOI: 10.1016/j.frl.2022.103515
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    References listed on IDEAS

    as
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    Cited by:

    1. Zhao, Yang & Zhang, Maojun & Pei, Ziting & Nan, Jiangxia, 2023. "The effects of quantitative easing on Bitcoin prices," Finance Research Letters, Elsevier, vol. 57(C).
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    3. Artor Nuhiu & Florin Aliu & Jakub Horák & Bedri Peci, 2023. "Making Informed Decisions in the Volatile Crypto Market: An Analysis of Portfolio Risk and Return," SAGE Open, , vol. 13(3), pages 21582440231, August.
    4. Guo, Kun & Liu, Fengqi & Sun, Xiaolei & Zhang, Dayong & Ji, Qiang, 2023. "Predicting natural gas futures’ volatility using climate risks," Finance Research Letters, Elsevier, vol. 55(PA).

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