Risks related to cryptocurrencies

Authors

  • Jelena Veličković Toplica Academy of Applied Studies, Department of Business School Blace, Serbia
  • Miljana Veličković Toplica Academy of Applied Studies, Department of Business School Blace, Serbia
  • Marina Jovović Toplica Academy of Applied Studies, Department of Business School Blace, Serbia
  • Jasminka Đuričanin Toplica Academy of Applied Studies, Department of Business School Blace, Serbia
  • Danijela Maksimović Toplica Academy of Applied Studies, Department of Business School Blace, Serbia

DOI:

https://doi.org/10.46793/ICEMIT23.245V

Keywords:

risks, cryptocurrencies, investors, markets

Abstract

Investors and service providers in the cryptocurrency market are exposed to significant risks. High volatility, technological characteristics and anonymity create: investor risk, risk associated with money laundering and financing of terrorism and systemic risk. The market is full of fraudsters and there are too few adequate rules to protect investors and prevent market manipulation and insider trading. Also, the value of cryptocurrencies is very volatile, and their prices change from day to day. Investors in cryptocurrencies are exposed to higher risks of loss than investors in other assets. Cryptocurrencies can potentially be used for money laundering and financing of terrorism. Negative consequences can be reflected through economic as well as overall social disruptions that manifest themselves through disruption of the monetary system, economic and social stability, transparency and efficiency of the financial system, etc.

References

Adrian, T., He, D., & Narain, A. (2021, December, 9). Global Crypto Regulation Should be Comprehensive, Consistent, and Coordinated. IMF Blog. https://www.imf.org/en/Blogs/Articles/2021/12/09/blog120921-global-crypto-regulation-should-be-comprehensive-consistent-coordinated

CoinGecko. (2023). Cijene kriptovaluta prema tržišnoj kapit. https://www.coingecko.com/hr

FATF. (2021). Updated Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. FATF, Paris. www.fatf-gafi.org/publications/fatfrecommendations/documents/Updated-Guidance-RBA-VA-VASP.html

Frankenfield, J. (2023, November, 2). Cryptocurrency Explained With Pros and Cons for Investment. Investopedia. https://www.investopedia.com/terms/c/cryptocurrency.asp

Narodna Banka Srbije. (n.d.). Sprečavanje pranja novca i finansiranja terorizma. Narodna Banka Srbije. Retrieved August 9, 2023, from https://nbs.rs/sr/ciljevi-i-funkcije/nadzor-nad-finansijskim-institucijama/sprecavanje-pranja-novca/

Narodna Banka Srbije. (n.d.). Sistemski rizik. Narodna Banka Srbije. Retrieved August 10, 2023, from https://nbs.rs/sr/ciljevi-i-funkcije/finansijska-stabilnost/finansijska-stabilnost/sistemski_rizik/

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Published

2023-12-27

How to Cite

Veličković, J., Veličković, M., Jovović, M., Đuričanin, J., & Maksimović, D. (2023). Risks related to cryptocurrencies. International Scientific Conference on Economy, Management and Information Technologies, 1(1), 245–251. https://doi.org/10.46793/ICEMIT23.245V

Issue

Vol. 1 No. 1 (2023): International Scientific Conference on Economy, Management and Information Technologies – ICEMIT 2023

Section

Articles

License

Copyright (c) 2023 International Scientific Conference on Economy, Management and Information Technologies

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.