Ban, Boom, and Echo! Entrepreneurship and Initial Coin Offerings

Cristiano Bellavitis, Douglas Cumming, Tom Vanacker

Research output: Contribution to journalArticlepeer-review

33 Scopus citations


Regulatory spillovers occur when regulation in one country affects either the expected regulatory approach and/or entrepreneurial finance markets in other countries. Drawing on institutional theory, we investigate the global implications of a regulatory spillover on entrepreneurship. We argue that regulatory spillovers have both short- and long-term effects on the number and quality of entrepreneurial finance initiatives such as Initial Coin Offerings (ICOs). Based on a large-scale sample of ICOs in 108 countries, we find that a regulatory ban of ICOs in one country causes a short-term increase in the number of low-rated ICOs in other countries and a long-term drop in the number of ICOs, especially low-rated, which increases the average ICO rating. That is, a restrictive regulation triggered a process of increased market selection.

Original languageEnglish (US)
JournalEntrepreneurship: Theory and Practice
StatePublished - Sep 2022


  • blockchain
  • entrepreneurial finance
  • entrepreneurship
  • initial coin offering
  • institutions

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics


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