Interested in Bitcoins, Corruption and Regulation? I bet you are! We are happy to share our new article published in Organization Science entitled “Regulation, Corruption, and Decentralized Autonomous Organizations: Evidence from Bitcoin Trading and Platform Founding Between 2011 and 2023”. Our article explores how regulatory environments and corruption shape the behavior of Bitcoin trading and Bitcoin platform founding across 49 countries and we find some interesting issues. For example, we find that the number of Bitcoin exchange platforms in a country is positively associated with Bitcoin legalization. However, Bitcoin trading volume is positively associated with Bitcoin illegalization. Why? We argue that it is the "forbidden"-fruit effect. We also differentiate between grand and petty corruption, and we find that in countries with higher levels of grand corruption, Bitcoin illegalization becomes even more strongly associated with trading. In contrast, grand corruption dampens the positive association between legalization and the number of Bitcoin exchange platforms.
You can find the full open-access article under:
https://pubsonline.informs.org/doi/epdf/10.1287/orsc.2023.18467