•This study presents an empirical analysis of liquidity thresholds for crypto assets.•The methodology developed by the SEC (2018) is used.•Liquidity patterns for crypto assets align with the SEC’s ...analysis (2018) for equity shares.•The dollar-based threshold metrics are more appropriate than unit-based metrics.
This study applies the methodology of the SEC (2018) to empirically determine thresholds for liquidity of crypto assets, utilizing two metrics for assessing liquidity: the Average Daily Volume (ADV) calculated by the number of units of crypto assets traded (ADV#) and by the traded dollar amounts (ADV$). Our findings reveal that the liquidity distribution patterns for both actively and thinly traded National Market System (NMS) stocks, alongside crypto-USD pairs, exhibit comparable trends. Notably, the liquidity threshold distributions remain stable despite the inclusion of crypto assets with very low unit prices; however, the volume of units traded does affect the distribution when ADV$ is used. This research contributes to the accounting field by offering a new approach to determine liquidity benchmarks for crypto assets, potentially guiding the assessment of whether a crypto asset is traded in an active or inactive market for fair value accounting purposes.
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This article focuses on the very first working draft of new crypto-asset regulation within the European Union. The primary aim of this article is to evaluate the newly defined institutes in the draft ...and confirm or disprove the hypothesis that this new system of crypto-assets may be implemented to the actual regulation of capital markets as well as payment system, in effect within the European Union.
As mentioned above, hypothesis will count on an ideal adoption of the MiCA regulation into the existing legal framework of both, capital markets as well as payments regulation in the European Union, not interfering with existing laws or regulations.
Within the first part of this article, synthesis will be used as well as compilation for the description of crypto-asset categories and of the issuers of crypto-assets or crypto-asset service providers. Subsequently, analysis will be applied for the specification of missing elements for the purpose of finding the right connection and implementation into the existing regulation of capital markets and payments industry.
Cryptocurrency regulation presents a unique and monumental challenge for policymakers. Many countries have threatened to impose complete bans on the use and trading of cryptocurrencies. This study ...aims to describe the responsibility of the State in protecting crypto asset customer in Indonesia. The normative juridical research method with data sources including primary data and secondary data is used as an analytical tool. The results of the study show that in order to protect crypto asset customer in Indonesia, the government refers to the Commodity Futures Trading Law No. 10 of 2011 which can provide legal protection for investors. Hedging of commodity futures contracts is carried out under the direct supervision of the Commodity Futures Trading Regulatory Agency (BAPPEBTI).
This study aims to analyze Islamic insurance as a solution to crypto asset risk management. This study uses a descriptive approach, namely research that tries to describe and explain the data ...obtained with secondary data. This study uses a type of literature study research, namely the source of data obtained from literature studies and various kinds of literature in accordance with the theme of the discussion. The results of this study indicate that: first, the risks that occur in assets due to technology failure, system damage, hacking, loss of capital, fraud, malpractice, war risk, natural disasters, death, bankruptcy, sanctions, and non-compliance are included in the subjective risk classification. , objective and pure. Second, Islamic insurance schemes (takaful) are essential to be included in cryptocurrency risk management in order to increase public confidence in the market. The implications of this article can be considered for cryptocurrency transactions in accordance with Islamic sharia because the risks that will occur in crypto assets have been mitigated by the existence of a sharia insurance scheme (takaful).
The increasing prevalence of immersive technologies and blockchain platforms in modern commerce has ignited animated debates among intellectual property law scholars on the use of nonfungible tokens ...(NFTs) in the sale of crypto‐assets or virtual property. Despite the rapidly growing interest in the implications of NFTs for copyright law, particularly in the realm of digital art, relatively little attention has been given to the question of whether the rights of copyright stakeholders (as opposed to the works in which such rights subsist) are capable of tokenisation as NFTs or of being transferred via NFT‐tethered transactions in blockchain environments. This article highlights the dangers of treating copyright as capable of being tokenised or transferred as NFTs on blockchain platforms, and argues that such an approach poses fundamental risks to the ‘nemo dat’ principle in property law. The article further proposes that the right of communication in copyright law should be extended to include the minting of NFTs in relation to digital files containing creative expression, to protect the interests of digital artists from the exploits of rogue crypto‐traders on blockchain platforms.
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The aim of this study is to analyse the dynamic connectedness relationship (DCR) between cryptocurrency, NFT, and DeFi assets. In the study, two cryptocurrencies consisting of Bitcoin and Ethereum, ...two NFTs consisting of Tezos and The Sandbox, and two DeFi assets consisting of Chainlik and Uniswap were analysed. The results showed that Ethereum cryptocurrency and Chainlink DeFi assets spilled volatility to other crypto assets. The other variables were assets that received volatility, and the volatility spillover relationship between NFT assets is less than other crypto assets.
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8.
Virtual assets of the distributed register Danіch, V.; Lutsenko, R.
Вісник Харківського національного університету імені В.Н. Каразіна: Серія Економіка,
6/2023
104
Journal Article
Peer reviewed
Open access
This publication focuses on the definition of “virtual assets of a distributed registry” as an economic category. Analysis of the term showed a lack of unity in the definition. The opportunities ...provided by the deployment of virtual assets in a distributed registry are new but potentially effective. Virtual assets can be distributed or unallocated registry assets, secured or unsecured. Among the virtual assets of the distributed ledger: tokenized assets and cryptocurrencies. Accordingly, these are types of virtual assets that exist exclusively in the form of a record with an information identifier. But in the case of a tokenized asset, this information is derived from the original asset. And in the case of a crypto asset, this information is not derived from the primary asset. The stakeholders of the virtual assets market are individuals, miners, mining pools, which carry out the storage, exchange, transfer, provision of intermediary services. Disadvantages of the introduction of virtual assets of the distributed register are the possibility of anonymous transfers, complicated process of identification of stakeholders in the virtual assets market, the possibility of financial speculation, money laundering, difficulties with taxation. The advantages include relatively low transaction fees, their irreversibility and rapid validation. Any changes to the data in the chain of blocks are possible only when stakeholders confirm the legitimacy of transactions in accordance with general rules and protocols. This technology prevents data loss because all network members keep an up-to-date, up-to-date copy in encrypted form. The use of blockchain eliminates the possibility of making changes to the data, so the database is considered relevant at the time of access. Data is stored on different servers, data cannot be processed with expired dates, changes are made in real time and it is impossible to forge them. It is noted that the introduction of virtual assets of the distributed register in order to stimulate economic growth requires a joint effort of the science sector, education sector, IT sector, financial sector, the sector of state regulators. The possibilities of distribution register technologies are constantly growing and opening new perspectives.
Purpose
Crypto-asset can be traded on many different exchanges worldwide with servers located in countries with different financial characteristics and institutional surroundings. Trading volume on ...these servers varies considerably regarding the server’s location, even though the prices do not differ greatly. Crypto-asset markets are poorly regulated and, as such, may leave a place for potential fraudulent activities and be linked to corruption. This paper aims to examine the role of country’s institutions in attracting Bitcoin traders.
Design/methodology/approach
Assuming heterogeneity between countries where crypto-asset exchange servers are located, the Pool Mean Group Estimator is used.
Findings
Results indicate that, from institutional variables, corruption in the country attracts while internal and external conflicts repel investors. Additionally, the growth of global uncertainty and the decline in the local stock markets motivate investors to trade Bitcoin.
Originality/value
Previous research has empirically proved the importance of institutions’ quality for financial market development. This paper goes one step further and tries to empirically confirm the theoretical assumptions and investigate in detail the role of institutions in choosing servers in a particular country for Bitcoin trading.
•The art market has widened to the trading of NFTs in art.•NFTs in digital art represent a diversification opportunity for investors.•NFTs art has properties that are not clearly linked to the media ...attention.•NFTs art is not affected by no-stable coins cryptocurrencies.•The results suggest a paradigm shift in the art world, not yet a revolution.
Recently, the art market has proposed the trading of NFTs. We focus on these research questions: a) does the increase in the value of cryptocurrencies affect the value of NTFs; b) does the interest of public opinion influence the value of NFTs. We apply causality and spill-over analyses to determine relationships and answers to our research questions. We find that NFTs present peculiar dynamics, unrelated or scarcely associated with cryptocurrencies and media attention, with the exception of stable coins. Our results suggest that NFT in digital art represents an opportunity in terms of diversification.
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