Cryptocurrencies and financial secrecy
|Author:||Bc. Stanislava Poizlová|
|Year:||2021 - summer|
|Leaders:|| PhDr. Miroslav Palanský M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||We study the short-term effect of the first global multilateral standard for
automatic exchange of information (AEIO), the so-called Common Reporting
Standard (CRS), on the volume of exchanges of money to cryptocurrencies. We
hypothesize that following the introduction of information exchange between
source countries and tax havens, the amount of money in the tax havens’ currencies exchanged to cryptocurrencies increases. Our results complement prior
findings of the literature that deposits in tax havens decrease following AEIO.
Through our model, we find that CRS induced a 40% increase, on average, in
the volume exchanged to/from Bitcoin. Around the time of the introduction
of CRS, volume exchanged to/from Bitcoin increased the most for currencies
GBP, CHF, and USD