Cryptocurrency Research Articles

Cryptoeconomics: Financial Market Security Aspects and Implications for Managerial Accounting

"The development of modern information technologies and the processes of globalization are key factors for the emergence and spread of virtual currency. The legal status of cryptocurrency is still uncertain. It is considered both as a modern means of payment and as a speculative tool for illegal activities. However, despite such diametrically opposed interpretations, the fact that economic realities are constantly changing is unconditional. The IFRS reporting system is no exception, which should adapt to new challenges in a timely manner and take into account the need to disclose information about new progressive elements as much as possible. The article aims to analyze the economic and financial essence of cryptocurrencies, assess the phenomenon of the crypto economy and its impact on the financial market and monetary policy, as well as to outline appropriate implications for the corporate level – namely, for management accounting. The methodology is based on a theoretical analysis of cryptographic protocols and tools for investment and macroeconomic analysis, some approaches of economic theory. It is shown that although today cryptocurrency is a speculative, high-risk instrument, cryptoeconomics is increasingly integrating into the global financial market, while the potential risks of this process still outweigh its benefits. Accordingly, at the micro-level, management accountants must understand the related risks and be able to explain the implications to the management team and the board of directors. The originality of research consists of an attempt to combine the analysis of macro- and micro-implications of emerging crypto economics based on an economic theory foundation."

Tax Regulations On Cryptocurrency Transactions In Indonesia

This study explores the evolving landscape of cryptocurrency taxation in Indonesia, focusing on regulatory developments and challenges. Tracing the trajectory from the introduction of Bitcoin in 2009 to the establishment of a formal crypto exchange in 2023, this research emphasizes the government's commitment to regulate and facilitate crypto asset trading. Despite this progress, challenges such as regulatory uncertainties, security concerns, necessitating a profound understanding of cryptocurrency dynamics to navigate the global financial landscape. This research focuses on exploring Indonesia's regulatory response, particularly in taxation, employing a qualitative descriptive methodology that integrates primary data from legal frameworks and secondary data through literature reviews, document analyses, and interviews with cryptocurrency traders and tax officials. This study contributes not only to academic discourse but also provides insights for fostering the growth of the cryptocurrency ecosystem while managing potential tax-related risks.

Innovations in Blockchain for Crypto Assets and Exchanges

Innovations in Blockchain for Crypto Assets and Exchanges

The Rise of Bitcoin ETFs and its Impact on Existing Crypto Currency Exchanges

The emergence of Bitcoin Exchange-Traded Funds (ETFs) marks a significant milestone in the evolution of cryptocurrency investment. This research paper investigates the potential impact of Bitcoin ETFs on existing cryptocurrency exchanges, focusing on liquidity dynamics and institutional investment trends. By examining the mechanisms through which ETFs may draw liquidity away from direct Bitcoin exchanges, this study aims to shed light on the evolving landscape of cryptocurrency trading. Additionally, the paper explores the potential for Bitcoin ETFs to attract increased institutional investment in the cryptocurrency market, analyzing the factors that may contribute to this trend. Through a comprehensive analysis of market data and expert insights, this research provides valuable insights into the evolving relationship between Bitcoin ETFs and traditional cryptocurrency exchanges.

Non-fungible tokens and metal markets: time-varying spillovers and portfolio implications

ABSTRACT The linkage between the metal market and crypto assets is a topic of concern. Utilizing a novel TVP-VAR framework, this study examines the volatility transmission between NFTs and precious/industrial metals. The results show strong connectivity, with most NFTs being net transmitters, and industrial metals being mostly net spillover recipients. Moreover, the connectivity was affected by the COVID-19 epidemic and the Russia-Ukraine War. Considering the potential reference value that this empirical fact may bring to market participants, this paper divides the time samples and uses the DCC-GARCH t-copula method to analyse the portfolio construction of every sub-sample. The research investigates and compares the hedge ratio, optimal weights, and hedging effectiveness of NFT-industrial metals and NFT-precious metals. These findings can bring potential inspiration to investors, market regulators, and policymakers.

Analysing Risk and Returns: A Study on Selected Crypto Currencies

The present study focuses on "Crypto currency" also called digital money existing on the block chain. It refers to the transactions related to computer-generated currencies which are secured by crypto currencies. The data considered in the project is from 2017 to 2023. The objective of this research is to compute and compare the risk and return performance of the selected crypto. In India, crypto currency investment carries a high degree of risk due to its uncertain legal status and lack of regulation. The Reserve Bank of India has issued warnings about the potential financial, operational, legal, customer protection, and security related risks associated with dealing in crypto currencies. However, the potential for high returns has also attracted many investors. To make informed decisions, Indian investors should conduct thorough research on the market, stay up-to-date on regulatory changes, and diversify their investment portfolios. It is also essential to have a clear understanding of one's risk tolerance and not invest more than one can afford to lose. In conclusion, by taking a balanced and well-informed approach to invest in crypto currencies, Indian investors can make effective decisions that weigh both the potential risks and returns.

INTERNET USERS’ PERCEPTION OF THE PREVALENCE OF ONLINE INVESTMENT FRAUD AND VICTIMISATION IN NIGERIA

This study investigated the prevalence of online investment fraud and victimisation among internet users in Nigeria, focusing on sociodemographic characteristics, investment behaviours, victimisation. experiences, and perceptions of fraud risk factors. The study employed a cross-sectional survey design, utilizing Google Forms for data collection and convenience sampling to recruit 164 participants from Ilorin, Kwara State. The study adopted the Routine Activities Theory (RAT) as theoretical framework. Findings reveal that a majority of respondents are young individuals with tertiary education, indicating their susceptibility to online investment fraud due to limited financial experience and a desire for quick financial gains. Notably, over half of the participants actively engage in online investments. In addition, family and friends' recommendations and the pursuit of financial freedom influencing investment decisions significantly. However, a substantial proportion of investors report falling victim to online investment fraud, predominantly through Ponzi/pyramid schemes, crypto currency scams, and forex trading scams. Financial losses vary among victims, with factors such as lack of regulation, poverty, unemployment, and insufficient training on fraud prevention contributing to vulnerability. Statistical analysis indicates a significant relationship between investment experience and the perception of high returns as a risk factor for fraud victimisation. These findings underscore the urgent need for regulatory measures, public awareness campaigns, and educational initiatives to mitigate the risks associated with online investment fraud in Nigeria.

Exploring the development of regulatory framework for crypto assets in South Africa

This paper explores the need for, and forms of regulatory framework and laws established to guide and control the growing number of individuals and firms investing and trading in crypto assets in South Africa. The step taken to regulate crypto assets was necessitated by the 2021 report of the Paris-based intergovernmental organisation referred to as the Financial Action Task Force (FATF) which revealed that there is apparent lack of crypto assets regulation in South Africa. In rising to this challenge, the South African regulatory authority known as the Financial Sector Conduct Authority (FSCA) in October 2022 indicated that crypto assets are digital representation of value and therefore could be categorised as financial product which are to be subjected to FSCA regulations with reference to Section 1(h) of the Financial Advisory and Intermediary Services Act (FAIS). The method adopted was to review the regulatory framework and laws governing crypto assets in South Africa. It was found that relevant regulatory framework and laws are needed to provide adequate protection for the investing public and to provide avenues for the sustainability and stability of the crypto assets business sector. The paper concludes that providing an efficient regulatory framework for crypto assets in South Africa will assist in limiting the risk of volatility and cyber-attacks to which individuals and firms trading and/or investing in crypto assets are exposed to. Moreover, an awareness of various regulatory controls and laws governing investments in crypto assets will ensure that individuals and firms in this sector tread in the path of caution.

Legal Protection For Cryptocurrency Investors In Trading Cryptocurrencies As Crypto Assets According To Civil Law In Indonesia

Crypto is a non-wuud commodity that is digital using cryptography. The legality of crypto assets in Indonesia has not received firm regulation in their use, and there is a need for a supervisory body that regulates all transaction activities for legal protection for investors in trading digital assets. The research method used in this study is to use normative juridical research methods, using a statutory approach (statute approach) and a conceptual approach (conceptual approach). The result of the discussion of this study is that for the legality of crypto assets, Bank Indonesia places them as digital money so that they are prohibited as a means of payment, while the Ministry of Trade places them as digital assets so that they are allowed to be traded on the Futures Exchange. Normatively, there is still opposition in looking at crypto money. Legal protection of investors who make crypto asset buying and selling transactions get legal protection for losses that can be caused both criminally, namely losses caused by cyber crime and civil losses due to Unlawful Actions.

The evolution of the debt—equity doctrine in the light of financial instruments’ digitalization

The article outlines the basics for using the debt—equity dichotomy in the financial instruments typology and analyzes the contradictions and short-comings of the existing approach to classification. It is shown that the “trap” of the debt—equity dichotomy comes from the path dependence process, mainly formed by the inertia of the tax system. It is noted that the applying of the debt—equity dichotomy entails a formalist approach to classification, which does not bring closer to the clarity of the delimitation of contracts according to the criteria of risk and reward distribution, and restrictions on post-contractual opportunism. Arguments are given to explain why the foundations of the debt— equity doctrine may be weakened in relation to crypto assets. This is supported by the fact that the genesis of digital assets occurs in a specific technological context, which determines its own criteria and framework for the typology of instruments. Another set of arguments comes from the fact that the world of crypto assets appears to be coherent with the specific environment of venture capital investment. This environment, in turn, arouses the demand for overcoming the debt—equity dichotomy to implement the tasks of risky investors and structuring the relations of the parties involved in projects. This demand has now led to the emergence of a number of instruments that cannot be classified as either debt or equity, including those using the construct of tokens or contractual agreements used by crowdfunding platforms. Overall, the intellectual effort that previously satisfactorily explained companies’ choices of financing styles and modes is now insufficient to reconcile capital structure theories with the practice of digital asset financing.

Are metaverse coins more prone to geopolitical risk than traditional crypto assets?

The present research explores the nexus of geopolitical risk (GPR) with metaverse coins and traditional crypto assets. We apply wavelet-based techniques to capture their time-varying relationships and casual nexus at different scales. Based on 776 observations from November 04, 2020, to December 19, 2022, for each time series, we find that GPR does not impact metaverse coins in the short run. Conversely, some of the traditional crypto assets are influenced by the GPR in the short, medium, and longer runs. Metaverse coins are slightly less prone to GPR than traditional crypto assets. The results can be utilized for risk mitigation and investment diversification.

Determinants of Investment Intentions in Millennial Generation

Investment intention is inseparable from the information and literacy obtained so that it creates a perception because investing, in addition to generating returns, will also raise risks. For this reason, this study aims to look at the determinants of investment intention in the millennial generation. The related factors selected were financial literacy and risk perception. This research was conducted using a survey method through an online questionnaire. The sample in this study is the millennial generation with at least one type of investment (gold, stocks, bonds, savings, mutual funds, time deposits, forex, crypto assets, property, and others). Data were analyzed using regression analysis. The results of the study show that risk perception and financial literacy have a significant effect on investment intention. Keywords: investment intention, millennial generation, financial literacy, risk perception

Rug Pull Cryptocurrency Case Analysis in the Perspective of Indonesian Business Law

Developments in financial technology continue to produce various new products, especially those related to investment in digital assets, or crypto assets. This study investigates the issue of consumer protection under Law No.8/1999 in crypto asset investment. This research uses normative juridical research methods. Juridical aspects such as theories, norms and regulations relating to investment in crypto assets are obtained from literature, books, online media and other sources related to the research subject, namely consumer protection against investment activities in crypto assets. This study tries to explain what reasons are driving the change and urges the government to create new, stricter regulations to protect crypto asset investors.

The markets in crypto assets regulation: What should firms be doing now?

The Markets in Crypto Assets Regulation (MiCA) aims1 to create a harmonised regulatory framework for crypto assets in the EU. MiCA will provide legal clarity and certainty for developing and using crypto assets and distributive ledger technology in financial services while ensuring high consumer and investor protection and market integrity. MiCA will establish a harmonised pan-EU regime for crypto assets, bringing unregulated crypto assets outside the regulatory perimeter into scope.

Comparative investment analysis between crypto and conventional financial assets amid heightened geopolitical risk

This empirical research study aims to investigate the asymmetric spillovers among crypto and key financial assets such as gold, equity, bonds, and the dollar-to-ruble exchange rate volatility, focusing on new developments during the Russia-Ukraine conflict in 2022. Utilizing time- and frequency-domain methodologies, this study conducts an in-depth analysis employing daily frequency data from January 01, 2018, to May 30, 2023. The study employs value at risk and conditional value at risk estimations to assess potential losses in the portfolio during the crisis. The findings reveal that Bitcoin exhibits hedging ability, enabling investors to diversify risk among the underlying financial assets. The study observes a significant increase in Bitcoin investments during the crisis, leading to heightened volatility and uncertainty. Negative news has a stronger impact compared to positive news, underscoring the importance of prudent asset allocation for risk mitigation. The implications of our findings are particularly significant for financial policymakers and trade partners of Russia. The study urges them to differentiate their short- and long-term strategies and procurement contracts. In the long run, policymakers should be cognizant of the influence of the riskiness of crypto assets during economic crises, guiding the formulation of prudent policies and investment decision-making initiatives.

Block Chain Technology, Cryptocurrency and Revenue Generation: A Systematic Review

The huge debt profile of Nigerian government dictates the need to look for alternative means of financing. This paper explored how the Nigerian government can increase its revenue through block chain technology and crypto currency. The study adopted a qualitative research approach by reviewing related literatures. The study concluded that even though crypto currency was not recognized as legal tender in Nigeria, the government can take advantage of the emerging and growing market of crypto currency by taxing it, this study recognized the fact that Nigeria government just enacted an act imposing 10% capital gain tax on digital assets including crypto currency, the government can still do better. It therefore recommended that Nigeria government should adopt the USA model of taxing crypto currency whereby not only capital gain tax would be charged, but also income tax and value added tax; thereby increasing the total revenue generated from this avenue.

Optimising Portfolio Risk by Involving Crypto Assets in a Volatile Macroeconomic Environment

Optimising Portfolio Risk by Involving Crypto Assets in a Volatile Macroeconomic Environment

Effect of herding behavior and overconfidence bias on investor’s financial decisions: A case of investment in crypto currency in Pakistan

There are various behavioral aspects that influence the financial decisions of individual investors, such as overconfidence, herding behavior, loss aversion, and regret aversion. Other psychological elements may play a substantial influence in deciding the success or failure of any financial action. The primary aims of the present research article are to examine the effects of overconfidence bias and herding behavior on individual financial decisions regarding crypto currency investment. The markets for crypto currencies are extremely sensitive to any minute or significant changes in the economy, as well as to any changes in the individual behaviors of investors. To achieve these aims, 650 questionnaires were distributed to individual investors employed by various financial institutions, multinational corporations, including oil and gas exploration and production companies, operating in Pakistan, individual investors dealing in stocks, and students regardless of investment size. Purposive sampling was used to choose 311 valid responses from a total of 593. Those investors that engage in crypto currency investments were deemed valid responses. Classifications of investments were outlined, and demographic information was requested from respondents. SPSS-based empirical analysis provided the basis for the conclusions. The primary findings indicate that both overconfidence bias and herding tendency have a favorable and statistically significant impact on investors' financial decisions when investing in cryptocurrencies. In this study's sample, however, the majority of investors were overconfident in their crypto currency investing decisions.

Cyber security Vulnerabilities and Remediation Through Cloud Security Tools

The proliferation of internet usage has surged dramatically, prompting individuals and businesses to conduct myriad transactions online rather than in physical spaces. The onset of the COVID-19 pandemic has further propelled this trend. Consequently, traditional forms of crime have migrated to the digital realm alongside the widespread adoption of digital technologies such as cloud computing, the Internet of Things (IoT), social media, wireless communication, and crypto currencies, amplifying security concerns in cyberspace. Notably, cybercriminals have begun offering cyber attacks as a service, automating attacks to magnify their impact. These attackers exploit vulnerabilities across hardware, software, and communication layers, perpetrating various forms of cyber attacks including distributed denial of service (DDoS), phishing, man-in-the-middle, password, remote, privilege escalation, and malware attacks. The sophistication of these attacks renders conventional protection systems, such as firewalls, intrusion detection systems, antivirus software, and access control lists, ineffective in detection. Consequently, there is an urgent imperative to devise innovative and pragmatic solutions to thwart cyber attacks. This paper elucidates the primary drivers behind cyber attacks, surveys recent attack instances, patterns, and detection methodologies, and explores contemporary technical and non-technical strategies for preemptively identifying and mitigating attacks. Leveraging cutting-edge technologies like machine learning, deep learning, cloud platforms, big data analytics, and blockchain holds promise in combating present and future cyber threats. These technological interventions can aid in malware detection, intrusion detection, spam filtering, DNS attack classification, fraud detection, identification of covert channels, and discernment of advanced persistent threats. Nonetheless, it's crucial to acknowledge that some promising solutions, notably machine learning and deep learning, are susceptible to evasion techniques, necessitating careful consideration when formulating defenses against sophisticated cyber attacks.

Cyber security Vulnerabilities and Remediation Through Cloud Security Tools

The proliferation of internet usage has surged dramatically, prompting individuals and businesses to conduct myriad transactions online rather than in physical spaces. The onset of the COVID-19 pandemic has further propelled this trend. Consequently, traditional forms of crime have migrated to the digital realm alongside the widespread adoption of digital technologies such as cloud computing, the Internet of Things (IoT), social media, wireless communication, and crypto currencies, amplifying security concerns in cyberspace. Notably, cybercriminals have begun offering cyber attacks as a service, automating attacks to magnify their impact. These attackers exploit vulnerabilities across hardware, software, and communication layers, perpetrating various forms of cyber attacks including distributed denial of service (DDoS), phishing, man-in-the-middle, password, remote, privilege escalation, and malware attacks. The sophistication of these attacks renders conventional protection systems, such as firewalls, intrusion detection systems, antivirus software, and access control lists, ineffective in detection. Consequently, there is an urgent imperative to devise innovative and pragmatic solutions to thwart cyber attacks. This paper elucidates the primary drivers behind cyber attacks, surveys recent attack instances, patterns, and detection methodologies, and explores contemporary technical and non-technical strategies for preemptively identifying and mitigating attacks. Leveraging cutting-edge technologies like machine learning, deep learning, cloud platforms, big data analytics, and blockchain holds promise in combating present and future cyber threats. These technological interventions can aid in malware detection, intrusion detection, spam filtering, DNS attack classification, fraud detection, identification of covert channels, and discernment of advanced persistent threats. Nonetheless, it's crucial to acknowledge that some promising solutions, notably machine learning and deep learning, are susceptible to evasion techniques, necessitating careful consideration when formulating defenses against sophisticated cyber attacks.