Investment in cryptocurrencies: a study of its adoption among Malaysian investors

ABSTRACT Given Malaysia's stance on cryptocurrencies as a digitalisation pioneer, as well as the surge in crime and fraud, regulators and organisations are concerned about retail investors' intentions to invest in cryptocurrency. The research model integrates diffusion of innovation theory factors (compatibility, relative advantage, trialability, ease of use, and observability) with consumer behaviour theory focused on retail investors' perceptions (perceived risk and perceived value). A total of 304 responses were collected through purposive and respondent-driven sampling. The data was examined using SmartPLS Structural Equation Modelling (PLS-SEM). The findings show that compatibility, trialability, ease of use, observability, and perceived value have significant influences on the intention to invest in cryptocurrency. Meanwhile, the influence of relative advantage and perceived risk on the intention to invest in cryptocurrency is not supported. This research is vital for analysing the underlying motivations of Malaysian retail investors to invest in cryptocurrencies and further formulating the regulatory framework.