Cryptocurrencies as a Risk Management Tool – Legal and Economic Perspectives

Yordanka Noneva-Zlatkova – South-West University ‘Neofit Rilski’, Faculty of Law and History, Georgi Izmirliev, 1, 2700, Blagoevgrad, Bulgaria

Mariya Paskaleva – South-West University ‘Neofit Rilski’, Faculty of Economics, Ivan Mihailov, 60, 2700, Blagoevgrad, Bulgaria

Abstract: The development of law is faced with many challenges, including the creation and testing of new information and communication technologies. At the same time, the law must quickly react with a set of legitimate means of reg­ulation to guarantee legal certainty in relations. Cryptocurrencies are a manifes­tation product of rapidly developing technology entering civil turnover at an in­creasingly rapid pace. The paper aims to examine the various legal aspects of cryptocurrencies in the EU and to reveal the relationship between the stock mar­ket, investors’ decisions, and cryptocurrency. It clarifies the concept of crypto­currency, comparing it to the millennia-old fiat money. In addition, the research traces the cryptocurrencies and their status as essential legal assets in the EU market. To test the relationship between the capital market, the investors ‘be­havior, and cryptocurrency, we apply the regression model, correlation anal­ysis, and Granger Causality Test. The explored variables include the Crypto In­dex (CRIX), the Sentix sentiment index, and the capital market index. We prove that the cryptocurrency market influences the stock market, which may be ex­plained by the fact that the investors in the crypto markets are better informed than those in the traditional financial markets.

7th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2023 – Selected Papers, Hybrid (Faculty of Organization and Informatics Varaždin, University of Zagreb, Croatia), October 26, 2023

ITEMA Selected Papers published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ITEMA conference partners: Faculty of Economics and Business, University of Maribor, Slovenia; Faculty of Organization and Informatics, University of Zagreb, Varaždin; Faculty of Geography, University of Belgrade, Serbia; Institute of Marketing, Poznan University of Economics and Business, Poland; Faculty of Agriculture, Banat’s University of Agricultural Sciences and Veterinary Medicine ”King Michael I of Romania”, Romania

ITEMA Conference 2023 Selected Papers: ISBN 978-86-80194-76-9, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.

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