An algorithmic model for the assessment of cryptocurrency regulation

Abstract

Since 2009 cryptocurrencies have been adopted by many stakeholders worldwide. At the time, the market capitalization of cryptocurrencies exceeded 2.5 trillion US dollars and is expected to grow even more in the next few years. Despite the cryptocurrency disruption in numerous sectors, there is no common legal framework that is used worldwide. Currently, there is a variation of different legal and regulatory frameworks used across different countries. The assessment of these frameworks is time-consuming and subjective as it is done manually. There is, therefore, a need for tools that can assess the regulatory landscape of cryptocurrencies and blockchain tokens across different countries in a more efficient and objective manner. This chapter investigates this area and proposes an algorithmic model to assess this rapidly evolving landscape. The model is tested using empirical data collected from 194 countries using web mining. The proposed algorithmic model contributes to the body of knowledge and provides stakeholders with a systematic and scalable approach to evaluate regulatory environments.