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The increasing popularity and presence of cryptocurrencies challenge regulators in providing adequate policy tools to handle the borderless, decentralized virtual assets. This paper examines the impact of EU regulatory announcements on Bitcoin trading through an event study on a unique data set. A bnormaltrading volumes of Bitcoin following key regulatory announcement are analyzed and show statistically significant impact on trading activity. The impact depends on the crypto-fiat currency pair and is observed to decrease BTC/EUR trading, while the opposite is detectable for BTC/USD. These results suggest that crypto currencies rely on centralized, regulated financial intermediaries, which bring them within reach of regulation

John Maynard Keynes proposed the concept of 'Bancor' in 1940 as a supranational currency that would serve as the international reserve currency. The concept did not take off at the time, despite the underlying need to liberate the international system from the hegemonic tendencies of a national currency serving as a global medium of exchange. The emergence of Bitcoin makes it possible to revive the idea of a de-nationalised global medium of exchange. This article examines the feasibility of such an idea by examining a viable state policy for adoption and use in the international realm.