Who manages the cryptocurrency. The value of bitcoin depends on the news

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Despite claims that digital money exist outside of national regulation, in fact, they are influenced by information about the introduction of new rules for the control of the industry

The value of cryptocurrencies depend on the news related to the market regulation, the authors of the report of the Bank for international settlements (BIS). They wrote that the industry relies on centralized exchanges, which are subject to state regulation.

“It is believed that cryptocurrencies are outside national regulation, but their prices and trading volumes react sensitively to news about market regulation”, — said the experts of the BIS Raphael Auer and Stijn Claessens.

They confirmed their words by two events — the failure of the securities and exchange Commission (SEC) to launch a bitcoin ETF from the brothers Winklevoss in March 2017, and the increased monitoring of money laundering by the financial services Agency of Japan in June 2018.

Almost immediately after these events, the cost of bitcoin dropped by a few percent. Analysts explain this trend by the fact that digital money is exchanged for Fiat on regulated trading platforms.

“Many users of digital money through companies or services that are regulated. The market is subject to segmentation and fragmentation, so national control is mandatory in some degree,” added the experts.

They stressed that the results of the study, despite the decentralized nature of digital money, some news can influence them. At least, this concerns the prices and trading volumes cryptocurrency, concluded the experts of the Bank for international settlements.

More news on cryptocurrency can be found in our telegram channel RBC-Crypto.

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