Cryptocurrency as an Investment: The Malaysian Context

Shangeetha Sukumaran, Thai Siew Bee and Shaista Wasiuzzaman
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Shangeetha Sukumaran: Faculty of Management, Multimedia University, Persiaran Multimedia, Cyberjaya 63100, Malaysia
Thai Siew Bee: Faculty of Management, Multimedia University, Persiaran Multimedia, Cyberjaya 63100, Malaysia
Shaista Wasiuzzaman: School of Business, University Teknology Brunei, Bandar Seri Begawan BE1410, Brunei

Risks, 2022, vol. 10, issue 4, 1-17

Abstract: Cryptocurrency is gaining popularity worldwide, with some countries already starting to regulate and accept cryptocurrency in their financial services. Malaysia’s Securities Commission (SC) announced in October 2021 that over MYR 16 billion (USD 3.85 billion) involving digital assets and cryptocurrencies were traded between August 2020 and September 2021. Since cryptocurrencies are issued by private corporations and are technically beyond the federal government’s control, criminals may use them for illegal reasons such as money laundering and terrorist funding. Consequently, it is vital to examine why investors are engaged in cryptocurrency in the first place. This study aims to provide insight into Malaysian investors’ perceptions by evaluating the influence of perceived risk and perceived value on their cryptocurrency adoption decision. The retail investors’ demographic characteristics (gender, age, education, income, and investment experience) were analyzed as control variables. Data were gathered using purposive sampling, and responses from 211 respondents from various cities in Malaysia were used in the final analysis. Data were examined using Smart PLS Structural Equation Modelling (PLS-SEM). Based on the finding’s, perceived value was found to have a significant influence on cryptocurrency adoption. Meanwhile, perceived risk had no significant influence on the adoption of cryptocurrency among the Malaysian investors.

Keywords: risk; cryptocurrency; investment; Malaysia; investors (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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