There are different approaches worldwide on how to regulate cryptocurrency: legalization, partial ban, or absolute ban. China has chosen the third option. Since 2013 the PRC has been introducing restrictive measures targeting ICO, Bitcoin and other cryptocurrency activities. In 2022 it finalized the formation of a legal framework for cryptocurrency regulation by publishing “Judicial Interpretation on Illegal Fundraising Criminal Cases.” The main reasons for the prohibitive Chinese approach are combating money laundering, ICO related scams, and illegal financing, i.e., public interest prevails over private interests. An analysis of the judicial practice of Chinese courts demonstrates that despite a rising number of cryptocurrency related civil disputes, plaintiffs are deprived of judicial protection because investing in digital financial assets is illegal and the rights of investors are not legitimate. The paper argues that a cryptocurrency ban makes it impossible to satisfy claims concerning illegal fundraising activities, while encouraging investors not to have any relations with illegal agents, brokers or exchanges.

The cryptocurrency market has received immense consideration in media and academia since the beginning of 2013 because of its huge price fluctuation. This study focuses on Arab investors who invest in the cryptocurrency market by investigating the influence of behavioral finance factors on investment decisions in the cryptocurrency market. A quantitative approach was used by employing a snowball sampling method through 112 questionnaires. The results show that herding theory, prospect theory, and heuristic theory have a significant effect on investors’ investment decisions in the cryptocurrency market. This emphasizes the significant role of the proposed behavioral factors as determinants of the investors’ investment decisions. This study contributes to the existing research by consolidating the results of different researches in this study. It also contributes to the investors’ understanding of the dynamics of the cryptocurrency market and it enhances the ability to make informed decisions based on their understanding. The implication of the findings will prepare hit and run investors to be progressively prepared to stay in the cryptocurrency market and develop their abilities on the most proficient method to settle on sound venture choices. Furthermore, the findings of this study will encourage financial specialists to realize that information on the traditional finance theory is not adequate to excel in the cryptocurrency market.