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Abstract

Decentralized technologies such as blockchain facilitate secure and anonymous transactions, heralding a new era of financial innovation. However, the advent of cryptocurrencies has also posed significant challenges, especially in the realm of preventing money laundering practices. In Indonesia, individuals have exploited these systems for illicit money laundering from fraudulent schemes. Therefore, this study aimed to critically analyze the effectiveness of current regulatory frameworks and propose improved approaches to mitigate money laundering risks associated with cryptocurrency. Indonesia expects to shift its legal perspective due to the substantial threats posed by attempting to regulate a volatile financial system. This study employed normative legal research methods. The findings suggest that recognizing cryptocurrency as a legal tender could advance the agenda of addressing money laundering as a critical threat to financial stability and national security. This would significantly enhance the regulatory framework and ensure the financial system's integrity amidst evolving threats.

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Legal Documents

Law Number 8 of 2010 on Prevention and Eradication of Money Laundering Crimes [Undang-Undang Nomor 8 Tahun 2010 tentang Pencegahan dan Pemberantasan Tindak Pidana Pencucian Uang].

Law Number 7 of 2011 on Currency [Undang-Undang Nomor 7 Tahun 2011 tentang Mata Uang].

Law Number 9 of 2013 on Prevention and Eradication of Terrorism Financing Crimes [Undang-Undang Nomor 9 Tahun 2013 tentang Pencegahan dan Pemberantasan Tindak Pidana Pendanaan Terorisme].

Law Number 4 of 2023 on Financial Sector Development and Strengthening [Undang-Undang Nomor 4 Tahun 2023 tentang Pengembangan dan Penguatan Sektor Keuangan].

Bank Indonesia Regulation Number 22/23/PBI/2020 on Payment System [Peraturan Bank Indonesia Nomor 22/23/PBI/2020 tentang Sistem Pembayaran].

Regulation of the Minister of Finance Number 68/PMK.03/2022 [Peraturan Menteri Keuangan Nomor 68/PMK.03/2022].

Financial Services Authority Regulation (POJK) Number 22 of 2023 on Consumer and Community Protection in the Financial Services Sector [Peraturan Otoritas Jasa Keuangan Nomor 22 Tahun 2023 tentang Pelindungan Konsumen dan Masyarakat di Sektor Jasa Keuangan].

DOI

https://doi.org/10.22304/pjih.v11n2.a4

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