Skip to main content

Research Repository

Advanced Search

Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions

Sobolev, Daphne; Kallinterakis, Vasileios

Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions Thumbnail


Authors

Daphne Sobolev



Abstract

Despite regulators’ warnings that investing in cryptoassets is highly risky, cryptocurrency investments are prevalent. To explore investors’ engagement with regulatory risk advice, we conducted two surveys. Cryptocurrency investors residing in the UK and the US were asked about their interpretation of the notion of risk, awareness of regulatory risk advice, and attitudes towards the advice and the regulators. Investors were also asked whether they followed the advice. Qualitative content analysis of their answers suggests that people often invest in cryptocurrencies although they understand the risks involved and are aware of the regulators’ advice. They do so due to their risk propensity, self-reliance, criticism of the informativeness of the advice, or attitudes towards regulators. Furthermore, negative attitudes towards regulators often stem from lack of trust and the perception that regulators are dated. This study suggests that regulators could benefit investors by providing them with more informative advice and addressing their attitudes.

Citation

Sobolev, D., & Kallinterakis, V. (2024). Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions. Journal of Behavioral and Experimental Finance, 44, Article 100994. https://doi.org/10.1016/j.jbef.2024.100994

Journal Article Type Article
Acceptance Date Sep 20, 2024
Online Publication Date Sep 10, 2024
Publication Date 2024-12
Deposit Date Sep 21, 2024
Publicly Available Date Sep 25, 2024
Journal Journal of Behavioral and Experimental Finance
Print ISSN 2214-6350
Electronic ISSN 2214-6369
Peer Reviewed Peer Reviewed
Volume 44
Article Number 100994
DOI https://doi.org/10.1016/j.jbef.2024.100994
Public URL https://durham-repository.worktribe.com/output/2873565

Files






You might also like



Downloadable Citations