{"title":"Bitcoin bans & regulatory segmentation in digitally native asset markets","authors":"Henrik Seikku , Imtiaz Sifat","doi":"10.1016/j.intfin.2025.102261","DOIUrl":null,"url":null,"abstract":"<div><div>We examine whether regulatory barriers segment technologically integrated financial markets using Bitcoin bans across 19 countries (2013–2024). Unlike traditional markets where infrastructure creates natural frictions, Bitcoin operates on a global, permissionless network. Using proper maximum likelihood BEKK-GARCH and CCC-GARCH estimation, we find no significant differences in market integration between liberal and conservative regulatory regimes across four complementary tests. However, country-specific analysis reveals substantial heterogeneity: major markets (China, Russia) achieve partial segmentation while smaller markets show counter-intuitive increases in integration post-ban. Market size and development explain less than 10% of regulatory effectiveness variation. These findings challenge traditional segmentation theory, demonstrating that decentralized technology creates persistent cross-market linkages that transcend regulatory boundaries. The heterogeneous and often counterproductive regulatory outcomes suggest policymakers should prioritize international coordination over unilateral restrictions when addressing digitally native assets.</div></div>","PeriodicalId":48119,"journal":{"name":"Journal of International Financial Markets Institutions & Money","volume":"106 ","pages":"Article 102261"},"PeriodicalIF":6.0000,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Financial Markets Institutions & Money","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1042443125001519","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/11/19 0:00:00","PubModel":"Epub","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
We examine whether regulatory barriers segment technologically integrated financial markets using Bitcoin bans across 19 countries (2013–2024). Unlike traditional markets where infrastructure creates natural frictions, Bitcoin operates on a global, permissionless network. Using proper maximum likelihood BEKK-GARCH and CCC-GARCH estimation, we find no significant differences in market integration between liberal and conservative regulatory regimes across four complementary tests. However, country-specific analysis reveals substantial heterogeneity: major markets (China, Russia) achieve partial segmentation while smaller markets show counter-intuitive increases in integration post-ban. Market size and development explain less than 10% of regulatory effectiveness variation. These findings challenge traditional segmentation theory, demonstrating that decentralized technology creates persistent cross-market linkages that transcend regulatory boundaries. The heterogeneous and often counterproductive regulatory outcomes suggest policymakers should prioritize international coordination over unilateral restrictions when addressing digitally native assets.
期刊介绍:
International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.