Cryptocurrency volatility markets

Woebbeking, Fabian

doi:10.1007/s42521-021-00037-3

Cited by 21 publications

(8 citation statements)

References 46 publications

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“…Given that in times of crisis, risk aversion affects both traditional and crypto markets, which share common shocks, the VIX futures contracts could be used to hedge cryptocurrency investments. Moreover, other volatility benchmarks, such as GVX (gold) or CVX (cryptocurrency) indices computed from option prices, may offer valuable hedging strategies to cryptocurrency investors (Woebbeking 2021 ). In particular, we show that cryptocurrency and volatility markets are insignificantly (weakly) connected under normal (extreme) market conditions.…”

Section: Discussionmentioning

confidence: 99%

Tail spillover effects between cryptocurrencies and uncertainty in the gold, oil, and stock markets

Mensi

Gubareva

et al. 2023

Financ Innov

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This study investigates tail dependence among five major cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash, and uncertainties in the gold, oil, and equity markets. Using the cross-quantilogram method and quantile connectedness approach, we identify cross-quantile interdependence between the analyzed variables. Our results show that the spillover between cryptocurrencies and volatility indices for the major traditional markets varies substantially across quantiles, implying that diversification benefits for these assets may differ widely across normal and extreme market conditions. Under normal market conditions, the total connectedness index is moderate and falls below the elevated values observed under bearish and bullish market conditions. Moreover, we show that under all market conditions, cryptocurrencies have a leadership influence over the volatility indices. Our results have important policy implications for enhancing financial stability and deliver valuable insights for deploying volatility-based financial instruments that can potentially provide cryptocurrency investors with suitable hedges, as we show that cryptocurrency and volatility markets are insignificantly (weakly) connected under normal (extreme) market conditions.

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Section: Discussionmentioning

confidence: 99%

Tail spillover effects between cryptocurrencies and uncertainty in the gold, oil, and stock markets

Mensi

Gubareva

et al. 2023

Financ Innov

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“…Existing literature notes that the nature of cryptocurrencies makes difficult to distinguish financial and technological risks (Dumas et al 2021). Because the exchange rate between a cryptocurrency and a fiat currency is governed by supply and demand, it is very volatile and unpredictable (Woebbeking 2021). This makes "investing" in cryptocurrencies a risky business, fuelling calls for regulations to safeguard people from deceptive ads and scams.…”

Section: Importance Of Crypto-asset Regulationmentioning

confidence: 99%

Crypto-asset regulatory landscape: a comparative analysis of the crypto-asset regulation in the UK and Germany

Wronka

2024

J Asset Manag

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The purpose of this research paper is to compare and analyse how crypto-assets are regulated in the UK and Germany. The aim is to understand and highlight the approaches taken by these two countries in terms of regulating crypto-assets and to explore the potential impact that their regulatory frameworks could have on the market for these crypto-assets. The research employs a doctrinal research design to examine the crypto-asset regulatory regimes in the UK and Germany. A comprehensive review of existing literature, official regulatory documents and relevant legal frameworks is conducted to understand the core components of each country's crypto-asset regulations. The findings of this study reveal divergences in the regulatory approaches of the UK and Germany towards crypto-assets. While the UK has embraced a principles-based regulatory framework, fostering innovation and industry growth, Germany has adopted a more prescriptive and cautious approach, focusing on investor protection and market stability. The research identifies that the UK's flexible approach has attracted a flourishing crypto-asset ecosystem, while Germany's conservative stance has offered greater investor confidence. However, certain regulatory gaps and challenges persist in both jurisdictions, such as ambiguities in classification and tax treatment, requiring further attention.

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“…In personal income tax (IRPF), these gains or losses are considered as capital variations and must be declared. For its part, swapping or cryptocurrency exchange refers to the process of exchanging one cryptocurrency for another, generally through exchange platforms or third-party services (Woebbeking 2021;Cipollini 2024). This exchange can generate income from movable capital in personal income tax, especially if profits are obtained from the difference between the value of the cryptocurrency at the time of acquiring it and the value at the time of exchange (Cipollini 2024).…”

Section: Taxation Of Cryptocurrencies In Spain For Individualsmentioning

confidence: 99%

Cryptocurrencies, Tax Ignorance and Tax Noncompliance in Direct Taxation: Spanish Empirical Evidence

Hernández Sánchez,

Sastre-Hernández,

Jorge-Vazquez

et al. 2024

Economies

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This article highlights the complexity of taxation surrounding cryptocurrency transactions due to the lack of uniform regulation, creating uncertainty for both taxpayers and tax authorities. After determining the tax obligations of individuals in taxation, a survey has been conducted to assess the level of knowledge and compliance with tax obligations related to cryptocurrencies. The survey, in which 103 people participated, reveals the confusion and errors that prevail in perceptions of the tax obligations for cryptocurrencies, particularly in transactions such as swapping and staking in personal income tax. This results in almost half of the respondents (49.5%) not declaring any of their operations with cryptocurrencies. The reasons for this include the fact that the majority of respondents (66%) find the regulation of cryptocurrencies in Spain confusing and difficult to understand. Additionally, 87.4% believe that tax agencies should provide more information and resources on the taxation of cryptocurrencies and digital assets, and that there should be clearer and more comprehensive regulation. However, it should be noted that 41.7% also consider that tax regulation discourages investment in cryptocurrencies.

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Cryptocurrency volatility markets

Cited by 21 publications

References 46 publications

Tail spillover effects between cryptocurrencies and uncertainty in the gold, oil, and stock markets

Tail spillover effects between cryptocurrencies and uncertainty in the gold, oil, and stock markets

Crypto-asset regulatory landscape: a comparative analysis of the crypto-asset regulation in the UK and Germany

Cryptocurrencies, Tax Ignorance and Tax Noncompliance in Direct Taxation: Spanish Empirical Evidence

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