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Cryptocurrency as an Investment: The Malaysian Context

Author

Listed:
  • 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)

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.

Suggested Citation

  • Shangeetha Sukumaran & Thai Siew Bee & Shaista Wasiuzzaman, 2022. "Cryptocurrency as an Investment: The Malaysian Context," Risks, MDPI, vol. 10(4), pages 1-17, April.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:4:p:86-:d:794219
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    References listed on IDEAS

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    Cited by:

    1. Simona Andreea Apostu & Mirela Panait & Làszló Vasa & Constanta Mihaescu & Zbyslaw Dobrowolski, 2022. "NFTs and Cryptocurrencies—The Metamorphosis of the Economy under the Sign of Blockchain: A Time Series Approach," Mathematics, MDPI, vol. 10(17), pages 1-13, September.
    2. Monika Eisenbardt & Tomasz Eisenbardt, 2023. "Can Cryptocurrencies Be Feasibly Adopted as a National Currency? The Perspective of the Younger Generation," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 463-481.
    3. Al-Omoush, Khaled Saleh & Gomez-Olmedo, Ana M. & Funes, Andrés Gómez, 2024. "Why do people choose to continue using cryptocurrencies?," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Nasir Sultan & Norazida Mohamed & Mervyn Martin & Hafizah Mohd Latif, 2023. "Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(2), pages 395-412, May.

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