The cryptocurrency market has experienced explosive growth since Bitcoin's inception in 2008, attracting significant attention from investors, regulators, and researchers. Existing research focuses on psychological factors influencing cryptocurrency investment, such as investor sentiment, herding effects, social influence, financial knowledge, perceived behavioral control, and trust. However, the objective influence of the policy environment remains largely unexplored. This study addresses this gap by examining the impact of group norms (descriptive norms) and policy norms (injunctive norms) on Chinese investors' autonomous motivation to invest in cryptocurrencies. China provides a compelling context due to its significant cryptocurrency market despite government crackdowns. The research questions are: (1) What is the mechanism by which social norms influence cryptocurrency investment? (2) Are there boundary conditions that affect investors' decisions? The study hypothesizes that group norms will positively influence investment via autonomous motivation, while policy norms will negatively influence investment by inhibiting autonomous motivation. The researchers expect that cryptocurrency knowledge will moderate the relationship between social norms and autonomous motivation.

The literature review examines social norms theory, distinguishing between descriptive (group) and injunctive (policy) norms. Group norms, reflecting the behavior of a social group, are expected to positively influence cryptocurrency investment due to social identity theory and social learning theory; investors are influenced by peers and desire belonging. Policy norms, representing government regulations, are expected to negatively impact investment based on normative focus theory, as penalties and perceived risks associated with government intervention decrease investment. The mediating role of autonomous motivation, the self-motivated and freely chosen engagement in behavior, is explored. The researchers predict that autonomous motivation mediates the relationships between both group and policy norms and cryptocurrency investment. Finally, the moderating role of cryptocurrency knowledge, including both subjective (investor's self-perceived understanding) and objective (factual knowledge), is considered. It is hypothesized that higher subjective knowledge will strengthen the positive effect of group norms and weaken the negative effect of policy norms on autonomous motivation, while higher objective knowledge will have the opposite moderating effect, reflecting a greater awareness of risks associated with cryptocurrency investment.

The study employed an online questionnaire survey targeting individuals interested in cryptocurrency investment in China. 1100 questionnaires were distributed in June 2021, resulting in 727 valid responses after screening for invalid and inconsistent data (66% response rate). The questionnaire measured group norms (four items), policy norms (four items), autonomous motivation (four items), subjective knowledge (four items), and objective knowledge (ten true/false questions). Cryptocurrency investment was measured using three items assessing willingness to invest. Control variables included gender, age, education level, investment experience, and investment expenditure. Data analysis included descriptive statistics, correlation analysis, linear regression, and structural equation modeling (SEM) to assess the measurement model's fit and test hypotheses. Bootstrap analysis with Process Macro was used to test mediating and moderating effects, setting the confidence interval at 95% with 5000 samples. Continuous variables were centered to reduce collinearity in moderation analysis. Objective knowledge was dichotomized into high and low based on the number of correctly answered questions.

The findings support the hypotheses regarding the main effects of group and policy norms. Group norms positively impacted cryptocurrency investment (β = 0.354, p < 0.001), while policy norms negatively impacted investment (β = -0.120, p < 0.01). Autonomous motivation played a mediating role. Group norms significantly increased autonomous motivation (β = 0.416, p < 0.001), which then positively influenced cryptocurrency investment. The indirect effect was significant (CI [0.097, 0.184]). Policy norms negatively affected autonomous motivation (β = -0.417, p < 0.001), completely mediating the negative effect on investment. The direct effect of policy norms was not significant after considering autonomous motivation (CI [-0.046, 0.112]). Regarding moderation, both subjective and objective knowledge negatively moderated the relationship between group norms and autonomous motivation. Higher levels of both types of knowledge weakened the positive effect of group norms on autonomous motivation. Similarly, both types of knowledge positively moderated the relationship between policy norms and autonomous motivation; higher knowledge strengthened the negative effect of policy norms on autonomous motivation. These results partially contradict the initial hypotheses regarding the directional effects of subjective knowledge. The overall model explained 19.7% of the variance in cryptocurrency investment.

The results highlight the importance of autonomous motivation in understanding cryptocurrency investment behavior in China. Group norms positively influence investment by fostering a sense of belonging and creating role models, promoting autonomous investment decisions. Policy norms, conversely, suppress investment by increasing perceived risks and limiting autonomous choices. The moderating effect of cryptocurrency knowledge suggests that increased knowledge, whether subjective or objective, leads to more self-controlled behavior, reducing the impact of both group and policy norms on autonomous motivation. This implies that individuals with higher knowledge are less susceptible to the influence of social trends and government regulations regarding cryptocurrency investment. The unexpected finding that subjective knowledge mirrors the effect of objective knowledge might suggest that subjective confidence is closely tied to actual knowledge in this context.

This study contributes to the understanding of cryptocurrency investment behavior by emphasizing the role of autonomous motivation and the moderating influence of cryptocurrency knowledge. The findings suggest that effective regulation requires both strong legal frameworks and effective public communication strategies aimed at enhancing cryptocurrency knowledge and countering misleading information. Future research could explore other cultural contexts, expand the range of cryptocurrencies investigated, and employ longitudinal studies to understand the dynamic interplay of these factors over time.

The study relies on self-reported data from a questionnaire survey, potentially introducing bias. The sample is limited to China and a specific period, affecting generalizability. The use of a general cryptocurrency construct might overlook the nuances of specific cryptocurrencies. Future studies should address these limitations by using diverse methodologies, broader sampling, and longitudinal designs.