Scholar: National School of Leadership

Research Articles

Vol. 10 No. 1.0 (2021): Scholar : National School of Leadership

Does Crypto Taxation Fuel Bitcoin Prices? An Event Study Approach

Submitted
January 31, 2023
Published
June 30, 2021

Abstract

Since their inception, cryptocurrencies and their associated markets have been notorious for their volatility, whether in terms of high volatility or illiquidity. Partly for those reasons, governments and regulators all over the world have tried to regulate those markets on a regular basis. In this study, it was evaluated to see if Bitcoin traders think market regulation is advantageous. The study evaluated the impact of regulatory news on Bitcoin taxes on cryptocurrency market returns in India using an event study technique, announced in the Union Budget. The results showed that the news of thirty percent taxation does result in any abnormal returns during the event window. It is clear from the study that the Indian taxation policy on virtual digital assets didn’t influenced the crypto market as well as Bitcoin

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