A Comprehensive Analysis of Cryptocurrency Awareness, Behavioral Determinants, and Systemic Vulnerability Among Indian University Students

International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 95 A Comprehensive Analysis of Cryptocurrency Awareness, Behavioural Determinants, and Systemic Vulnerability Among Indian University Students Aditya 1#1, Aparajeeta Singh 2#2, Amit Kumar Gupta 3#3, Chaitra L G 4#4. and Swathi A 5#5 #1 Aditya, Student, 3 rd year B.E, Computer Science and Engineering, DSATM, Bengaluru, India, [email protected] #2 Aparajeeta Singh, Student, 3 rd year B.E, Computer Science and Engineering, DSATM, Bengaluru, India, [email protected] #3 Amit Kumar Gupta, Student, 3 rd year B.E, Computer Science and Engineering, DSATM, Bengaluru, India, [email protected] #4 Chaitra L G, Student, 3 rd year B.E, Computer Science and Engineering, DSATM, Bengaluru, India, 1dt23c[email protected].in #5 Swathi A, Assistant Professor, Computer Science and Engineering DSATM, Bengaluru, India, [email protected] ARTICLE INFO ABSTRACT ©2025 RS Publication Paper ID: IJASTR6926A701A21A9 Received: 2025-10-27 Published: 2025-11-26 DOI: https://dx.doi.org/ 10.5281/zenodo.1772 5514 Page No: 95-101 One of the markets for virtual digital assets (VDAs) that appears to be expanding the fastest in the world is India. University students are the most important group to understand awareness, behavioural patterns, and systemic vulnerabilities because cryptocurrency adoption is especially concentrated among those between the ages of 18 and 24. While 58% of students are familiar with cryptocurrencies, 44.17% report low or exceptionally low awareness, and functional literacy, regulatory understanding, cybersecurity awareness, and risk comprehension remain woefully inadequate. Investment intention is largely influenced by Subjective Norms (SN), mainly peer groups (42.50%) and social media (30%), according to behavioural modelling using the Theory of Planned Behaviour (TPB) and Technology Acceptance Model (TAM). Perceived Behavioural Control (PBC) has a negligible impact because of low technical and financial competence. The study also identifies the "Compliance Trap," a systemic vulnerability brought about by a lack of knowledge of India's VDA regulatory framework, which exposes novice investors to unforeseen financial and legal repercussions due to the 30% flat tax, 1% TDS, and non-allowance of loss offsetting. Key words: Financial literacy, virtual digital assets (VDA), cryptocurrency, India, university students, subjective norms, theory of planned behavior, TAM, and compliance risk . International Journal of Advanced Scientific and Technical Research Available online on http://www.rspublication.com/ijst/index.html ISSN 2249-9954 Cite This Paper: Aditya, Aparajeeta Singh, Amit Kumar Gupta, Chaitra L G,. and Swathi A (2025). "A Comprehensive Analysis of Cryptocurrency Awareness, Behavioral Determinants, and Systemic Vulnerability Among Indian University Students". INTERNATIONAL JOURNAL OF ADVANCED SCIENTIFIC AND TECHNICAL RESEARCH (IJASTR), vol. 15, no. 6, 2025, pp. 95-101. DOI: https://dx.doi.org/10.5281/zenodo.17725514 International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 96 INTRODUCTION By utilizing blockchain technology to facilitate decentralized, peer-to-peer transactions without centralized authority, cryptocurrencies represent a paradigm shift in the global financial system. The use of cryptocurrencies has increased dramatically in India, primarily due to young, tech-savvy people who use social media extensively rather than institutional investors. Among these groups, university students are the most enthusiastic adopters, partly due to their exposure to technology, partly due to peer influence, and significantly due to the portrayal of crypto as a quick wealth-creation mechanism. But enthusiasm is not the same as functional knowledge. The landscape of Indian student cryptocurrency investors is characterized by a disconnect between high intention and low competence. The cryptocurrency ecosystem in India is particularly complicated due to regulatory ambiguity, strict tax laws, high susceptibility to online fraud, pervasive disinformation, and a lack of formal financial education. Students in particular frequently misunderstand the mechanics of Virtual Digital Asset (VDA) taxation, misinterpret cryptocurrencies as "legal tender," and are unaware of crucial compliance requirements, such as the 1% TDS on every crypto transaction in India and the inability to offset losses—factors that can make speculative investing financially detrimental. This lack of knowledge increases vulnerability to fraud, rash trading, and noncompliance with regulations. In light of this, the current study aims to assess cryptocurrency awareness among Indian university students by synthesizing national and institutional surveys; analyze behavioral determinants such as Attitude, Subjective Norms, Perceived Behavioral Control, Trust, Perceived Risk, and Financial Literacy; look into systemic vulnerabilities like the "Compliance Trap," cybersecurity exposure, and psychological manipulation; and ultimately suggest a structured educational and policy framework to improve digital financial literacy within Indian higher education. Propose a structured educational and policy framework for improving digital financial literacy in Indian higher education. LITERATURE SURVEY Studies concerning awareness and the adoption of cryptocurrency among university students have constantly shown that their awareness is wide but not deep. Previous studies indicate that while a majority of the students claimed familiarity with the concept of cryptocurrency, their actual technical and functional understanding of it remains low. For instance, Smith et al. [1] found that students very often recognize terms like Bitcoin and blockchain but lack deeper knowledge about private keys or consensus algorithms. A similar trend is seen in Indian contexts, where 44.17% of the students showed low or very low awareness in institutional surveys [9][10]. A strong influence of Subjective Norms emerges across many studies. Jones and Brown [2] found that exposure to social media significantly influences crypto awareness, while other reports detail that the main sources of information on investment matters for students come from friends and online communities [3][9]. This is also very much in line with TPB: SN ranks consistently as the strongest determinant of investment intention among young people [4][7][8]. A survey conducted among Indian university students also corroborates this trend: 42.50% of them get information regarding crypto from friends, and 30% from social media [9][10]. International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 97 With generally low PBC-in particular, concerning technical skills related to the management of keys and understanding of transaction fees-students have continued to invest, which implies that SN override competence-based hesitation. Similarly, Spain and other regions reported students investing despite limited technical literacy due to perceived profitability and peer influence [7][11]. This adoption behaviour can also be explained by the Technology Acceptance Model (TAM). Students perceive cryptocurrencies and exchanges as "easy to use" via simplified mobile interfaces, even though they do not understand the underlying systems involving hashing, consensus, or wallet mechanisms. Arias-Oliva et al. [7] and Walters et al. [11], in their research, established that Perceived Ease of Use affects student adoption strongly, mostly leading to a false sense of competence. Trust plays an inconsistent yet relevant role. Gupta et al. [5] and Rin et al. [8] stress that perceived trust in crypto systems or exchanges enhances investment intention, although too many students do not have enough knowledge to estimate system security. This misplaced trust amplifies exposure to scams-a problem noted in cybersecurity studies documenting the rapid evolution of crypto-related phishing and fraud [12][15]. The authors have identified a recurring theme in the literature: a severe financial literacy gap. As Sadiq and Khan [6] reported, low financial literacy distorts risk perception by the investors, making them more prone to hype cycles and market volatility. This is in tune with findings that students often relate cryptocurrencies with fast wealth and sensational media portrayal rather than understanding the longterm risk factors associated with it [13][14]. Moreover, several studies have shown the general lack of clarity regarding regulatory frameworks, more so in developing markets like India. Reports such as “VDA Adoption, Behaviour, and Regulatory Compliance Among Indian Youth” [10] contain findings that students often misunderstand cryptocurrencies as legal tender, misinterpret the implication of a 30% flat tax, and are unaware of various restrictions, including non-offsetable losses and 1% TDS. This knowledge gap presents a systemic vulnerability called the “Compliance Trap” and places young investors in a position of heightened legal and financial vulnerability. On the whole, literature supports the fact that adoption among youth in India and other countries is influenced by peers, perceived profitability, and ease of access. It is constrained by low literacy, weak regulatory understanding, and high exposure to cyber risks. METHODOLOGY This research uses a quantitative, descriptive, cross-sectional design to describe cryptocurrency awareness, behavioural determinants, and regulatory vulnerability among Indian university students. The approach integrates primary data gathered by structured online questionnaires with the insights synthesized from established national and institutional studies documented in earlier literature, such as works by Smith et al. (2019), Jones and Brown (2020), and recent reports on compliance of Indian youth with VDAs. The target population in this research covers university students within the age International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 98 brackets of 18 to 24, since this age bracket is consistently being identified as the most active yet most vulnerable demographic group in the cryptocurrency landscape. Respondents participated in this study, with the majority falling within the 18–20 age category and studying undergraduate courses in engineering and technology streams. No respondents had received any academic education in finance or investment courses, which corroborates the observations in literature that student investors lack formal financial literacy despite high technological exposure. A convenience sampling method was applied on the basis of accessibility, the willingness of the subjects to participate, and the exploratory nature of the study. The sample size does have its limitation regarding statistical generalization, but the results could be an indicative representation of the trends observed in general among Indian university students in available studies. Data collection was done through a structured Google Forms questionnaire, which assesses awareness, functional knowledge, behavioural intention, regulatory understanding, and perceived risks. The instrument consisted of multiple-choice, Likert scale, and true/false questions. In addition, the structure was informed by widely accepted theoretical and empirical models, including the Theory of Planned Behaviour, the Technology Acceptance Model, and financial literacy frameworks, as seen in works such as AriasOliva et al. (2019), Rin et al. (2018), Sadiq & Khan (2019), and Walters et al. (2022). To ensure conceptual validity, subjective self-assessment items were embedded into the survey alongside objective knowledge items, allowing triangulation to identify gaps between perceived and actual literacy. The data collection took place over a month, using digital distribution of the Google Form. Participation was voluntary, fully anonymous, and uncompensated, collecting no personally identifiable information. This guaranteed adherence to the normal ethical conventions for educational research involving human participants. This also means that respondents were at liberty to withdraw at any point in time without any consequences. The online mode of administration was preferred because it is accessible to university students and corresponds to a digital-first approach found in previous studies related to technology adoption and youth behaviour. Data analysis was based mainly on descriptive statistical techniques, including percentage distribution, frequency analysis, and mean scores for Likert-based measures. These descriptive results were interpreted within the framework of TPB to explore how Attitude, Subjective Norms, and Perceived Behavioural Control influence students' interest and behaviour in cryptocurrency. Similarly, TAM constructs were applied to comprehend how perceived ease of use and perceived usefulness influence students' acceptance and curiosity in crypto platforms. Moreover, risk-perception and financial literacy theories underpinned interpretation of students' responses to questions on risk awareness, security, and regulatory compliance, in particular with regard to vulnerabilities such as the "Compliance Trap," which has been identified in previously published VDA compliance studies. Ethical considerations were followed to ensure the research was appropriate based on standards of confidentiality, voluntary participation, and responsible handling of data. RESULT ANALYSIS AND DISCUSSIONS An ecosystem characterized by a critical misalignment between familiarity and functional literacy is revealed by the multi-study synthesis of results on cryptocurrency adoption among Indian university International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 99 students. Although the average familiarity rate is about $58\%$, a sizable percentage ($44.17\%$) report low functional literacy, meaning they don't understand basic concepts like wallet operations, consensus mechanisms like Proof-of-Stake, or private key security. An overconfidence bias based only on brand recognition (Bitcoin, Ethereum) results from the fact that knowledge acquisition is primarily social, driven by friends ($42.50\%$) and social media influencers ($30\%$), rather than academic or official channels. The Behavioral Determinants unequivocally demonstrate the dominance of Subjective Norms (SN), demonstrating that students' investment intentions are largely influenced by peer recommendations and the widespread social pressure that "everyone is doing it," frequently taking precedence over technical knowledge and logical risk assessment. Even though students are aware of their low Perceived Behavioral Control (PBC), particularly their lack of confidence in handling private keys or filing cryptocurrency taxes, the much greater influence of SN keeps this incompetence from discouraging investment. Because taking risks is socially rewarded, this behavioral ecosystem encourages FOMO-driven decisions, herd mentality, and a high susceptibility to hype cycles and fraud. The severe Regulatory Misunderstanding, also known as the Compliance Trap, is a very concerning finding. Over $56\%$ of students show almost no knowledge of India's VDA regulations and mistakenly think that cryptocurrency is "legal tender". They are unaware of the $1% TDS on each transaction, the $30% flat tax on gains, and the important regulation that prohibits loss offsetting. This ignorance puts them at risk for serious legal and financial consequences, such as unintentional tax evasion, fines, and irreversible financial loss from non-offsetable losses, particularly when utilizing offshore, non-FIU-IND compliant exchanges. Lastly, the lack of a structured curriculum on blockchain architecture, smart contract development, or critical digital risk management and financial compliance in Indian universities contributes to the significant Institutional Readiness gap. Despite the students' obvious desire for such academic courses, this educational gap forces them to rely on non-expert, frequently biased social media sources, normalizing risky behavior and sustaining the cycle of misinformation and high vulnerability. When taken as a whole, these findings characterize an integrated, high-risk youth cryptocurrency ecosystem where low literacy, zero regulatory compliance, and critical cybersecurity weakness are catastrophically combined with high enthusiasm and social pressure. CONCLUSION The study finds that while Indian university students have a high level of familiarity with cryptocurrencies, their functional literacy, accuracy, and depth are critically lacking. Without the fundamental knowledge needed to safely navigate this technologically complex financial ecosystem, students are eager participants. A behavioral environment marked by impulsivity, vulnerability to false information, and herd-driven risk-taking is produced when Subjective Norms predominate over wellinformed decision-making. Due to high perceived social expectations, students continue to interact with VDAs despite having low technical and financial confidence (PBC). The regulatory misunderstanding, particularly with regard to India's stringent taxation framework—30%. Students' awareness of cybersecurity is also startlingly low; they don't even know about the most fundamental International Journal of Advanced Scientific and Technical Research ISSN 2249-9954 Available online on http://www.rspublication.com/ijst/index.html volume 15, No. 6, 2025 DOI: 10.5281/zenodo.17725514 Original Article ©2025 RS Publication, rspublic[email protected] 100 safeguards like hardware wallets, 2FA, or password hygiene. They are therefore easy targets for increasingly complex cybercrimes. The quick changes in the financial landscape have not been met by educational institutions. Social media influencers and unreliable online content dangerously fill the knowledge gap left by the lack of organized instruction in digital finance, blockchain principles, cybersecurity, and VDA compliance. REFERENCES [1] S. Smith, R. Patel, and L. 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