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This study aims to investigate the impact of FTX bankruptcy on the global stock markets, including both the developed and emerging markets, as per the Morgan Stanley Capital Investment (MSCI) country classification.

Using the daily closing prices for leading stock market indices of all 47 countries in the MSCI market classification, comprising 23 developed markets and 24 emerging markets, the event study methodology is used to examine the impact of the event on developed markets, emerging markets and overall global equity markets.

The study finds heterogeneous effects of the event on different countries. Results indicate that overall global equity markets experienced a statistically significant positive cumulative average abnormal returns of 15.8533% in the complete event window of 28 days from t − 7 to t + 20. The authors conclude that traditional global equity markets can be used as a hedge against potential financial risk posed by unfavorable events in the cryptocurrency markets and have safe haven properties.

The study emphasizes the global financial system’s interconnectedness and the potential of traditional equity markets to hedge risks in the cryptocurrency market. The findings are relevant for investors seeking portfolio diversification and mitigating their exposure to potential risks in the cryptocurrency market.

To the best of the authors’ knowledge, the present study is the earliest attempt to comprehensively examine the impact of the bankruptcy of the world’s fourth largest cryptocurrency exchange, FTX, on the global equity markets.

This study aims to scrutinize time-varying return and volatility interlinkages among major cryptocurrencies, NFT tokens and DeFi assets between 1 July 2018 and 19 February 2023 and determine optimal portfolio allocations and hedging effectiveness under different portfolio construction techniques.

This work examines time-varying return and volatility interlinkages among major cryptocurrencies, NFT tokens, and DeFi assets between 1 July 2018 and 19 February 2023. To this end, the time-varying parameter-vector autoregression (TVP-VAR)-based connectedness methodology of Antonakakis et al. (2020) This approach is an extended version of the Diebold–Yilmaz (DY) method (Diebold and Yılmaz, 2014) and has advantages over the original DY. First, unlike the DY, it is free of the selection of a particular window size. Second, it has robustness for the outliers. Furthermore, following Broadstock et al. (2022), the author estimates time-varying optimal portfolio weights and hedging effectiveness under different portfolio construction scenarios.

This study's results indicate the following results: (1) The overall connectedness indices prominently capture well-known financial/geopolitical distress incidents; (2) the leading cryptocurrencies (ETH, BTC and BNB) are the largest transmitter of return shocks, while LINK and BTC are the largest transmitters/recipients of volatility shocks; (3) cryptocurrencies, NFTs and DeFi form distinct cluster groups in terms of return and volatility connectedness; (4) the connectedness networks estimated around the 2022 cryptocurrency crash and the FTX's filing for the bankruptcy are characterized by the strongest return and volatility interlinkages; (5) optimal portfolio strategies computed by different portfolio construction techniques display similar motifs and have sustained growth paths except for some short-lived drop backs.

This study's findings imply several policy suggestions for investors, stakeholders and policymakers. First, the study's time-based dynamic interlinkages can help market participants in their optimal portfolio decisions. In particular, the persistent net receiving roles of the DeFi assets and the NFTs throughout the episode, especially around the financial/geopolitical turmoil, underpin their safe haven potentials (Umar et al., 2022a, b). Finally, since the total connectedness indices (TCIs) are prone to significantly increase around financial/geopolitical burst times, these tools can be valuable for policy makers to monitor risk.

The contribution of knowledge is at least threefold. First, the author focuses on the dynamic time interlinkages among major cryptocurrencies, NFTs and DeFi assets in July 2018 and February 2023 considering the prominent recent financial/geopolitical incidents. Second, the author estimates network topologies of dynamic connectedness around financial/geopolitical bursts and compared them in terms of interlinkages. Finally, the author calculates the time-varying optimal portfolio allocations and hedging effectiveness under different portfolio construction techniques.

This paper aims to analyse the virtual currency regulation especially in Finland, Sweden and Norway. Different member states had a bit differently incorporated regulation of AMLD5. Finland has gone the furthest in regulation and even issuers of virtual currency are under the Finnish regulation.

In one hand, the study approach is legal dogmatics, but in other hand it is comparative legal research. Both approaches can be found in this paper.

The EEA is going from a more fragmented regulatory landscape based on 5th Anti-Money Laundering Directive to a more uniform regulatory approach provided by a legislative package that regulates crypto assets more broadly, coupled with an overhaul of the anti-money laundering rules, bringing them into a single European rulebook. Finland has taken a step further in this matter. Therefore, it would be reasonable for the AMLD5 scope to be expanded in this respect. It is a welcome development that the regulation will be unified and that investor protection will be better taken into account in the future as well.

This paper gives a picture of what kind of challenges is there in Fennoscandic in terms of money laundering regulation of virtual currencies. On the other hand, this paper brings into the discussion the rather clever solutions of Fennoscandic (especially Finland) regarding money laundering of virtual currencies.