Daphne Sobolev
Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions
Sobolev, Daphne; Kallinterakis, Vasileios
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 |
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This accepted manuscript is licensed under the Creative Commons Attribution 4.0 licence. https://creativecommons.org/licenses/by/4.0/
Published Journal Article
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Publisher Licence URL
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