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

【Author】 Sobolev, Daphne; Kallinterakis, Vasileios

【Source】JOURNAL OF BEHAVIORAL AND EXPERIMENTAL FINANCE

【影响因子】8.222

【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.

【Keywords】Cryptocurrency; Risk assessment; Regulation; Investor behavior; Behavioral finance; Judgment and decision-making

【发表时间】2024 DEC

【收录时间】2024-10-14

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析