A recent paper by Ahmad Al Izham Izadin, published on SSRN, has sparked discussions across the crypto community. Entitled “Crypto Spillovers in ASEAN-5: Is Regulation Shaping Market Integration?”, the study examines how Bitcoin price movements affect the stock markets of the ASEAN-5 (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) – and the role regulation plays in this relationship.
The key finding: While the markets show relative independence during stable periods, their sensitivity rises sharply in times of crisis. Especially when regulators announce new measures or tighten existing rules, spillover effects intensify. This means Bitcoin’s volatility increasingly transmits to the region’s equity markets – and vice versa.
For investors and analysts, the study offers crucial insights: understanding the dynamics of regulation and market integration can help manage risks more effectively and refine investment strategies. It also highlights Asia’s growing role as not just an observer but a driver of global crypto developments.
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