Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency
Indonesia’s recent development in legal policy toward cryptocurrency is pertinent to ask whether this new investment market has any more risk to throw over Indonesia than how to protect the existing variable parties by overall structural formation. This tendency has prevented the government to imple...
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| Format: | Article |
| Language: | English |
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Brawijaya University
2019-04-01
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| Series: | Brawijaya Law Journal |
| Subjects: | |
| Online Access: | https://lawjournal.ub.ac.id/index.php/law/article/view/189 |
| _version_ | 1818139956954005504 |
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| author | Soonpeel Edgar Chang |
| author_facet | Soonpeel Edgar Chang |
| author_sort | Soonpeel Edgar Chang |
| collection | DOAJ |
| description | Indonesia’s recent development in legal policy toward cryptocurrency is pertinent to ask whether this new investment market has any more risk to throw over Indonesia than how to protect the existing variable parties by overall structural formation. This tendency has prevented the government to implement the machinery of more fundamental keynote of policy. Against this backdrops, this research first analyzes the existing laws and regulations to examine the current legal status of virtual currency in Indonesia with the method of conceptual analysis. Despite the Government’s skeptical stance about economic soundness that cryptocurrency market leads, however, how to protect the various parties in the existing market is a different issue which still needs an urgent attention from policy makers, legal practitioners, judiciary and academic researchers. Therefore, this paper further studies the relevant laws and regulations governing the actual operation of cryptocurrency exchange in Indonesia to discuss the more practical aspects by interviewing an Indonesian cryptocurrency exchange and professional lawyers at Dentons HPRP. Subsequently, the most worrisome legal risks in the industry are diagnosed by interviewing a global cryptocurrency exchanges. This study concludes that BAPPEBTI Regulation No. 5 of 2019 cannot be the good answer to minimize the risk and will only harm bona fide market participants without a good-standing authority. |
| first_indexed | 2024-12-11T10:36:20Z |
| format | Article |
| id | doaj.art-13c2145f5aa247a0a2f6e9494b8308ab |
| institution | Directory Open Access Journal |
| issn | 2356-4512 2503-0841 |
| language | English |
| last_indexed | 2024-12-11T10:36:20Z |
| publishDate | 2019-04-01 |
| publisher | Brawijaya University |
| record_format | Article |
| series | Brawijaya Law Journal |
| spelling | doaj.art-13c2145f5aa247a0a2f6e9494b8308ab2022-12-22T01:10:41ZengBrawijaya UniversityBrawijaya Law Journal2356-45122503-08412019-04-0161769310.21776/ub.blj.2019.006.01.0666Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of CryptocurrencySoonpeel Edgar Chang0Attorney at New York Bar, Korindo GroupIndonesia’s recent development in legal policy toward cryptocurrency is pertinent to ask whether this new investment market has any more risk to throw over Indonesia than how to protect the existing variable parties by overall structural formation. This tendency has prevented the government to implement the machinery of more fundamental keynote of policy. Against this backdrops, this research first analyzes the existing laws and regulations to examine the current legal status of virtual currency in Indonesia with the method of conceptual analysis. Despite the Government’s skeptical stance about economic soundness that cryptocurrency market leads, however, how to protect the various parties in the existing market is a different issue which still needs an urgent attention from policy makers, legal practitioners, judiciary and academic researchers. Therefore, this paper further studies the relevant laws and regulations governing the actual operation of cryptocurrency exchange in Indonesia to discuss the more practical aspects by interviewing an Indonesian cryptocurrency exchange and professional lawyers at Dentons HPRP. Subsequently, the most worrisome legal risks in the industry are diagnosed by interviewing a global cryptocurrency exchanges. This study concludes that BAPPEBTI Regulation No. 5 of 2019 cannot be the good answer to minimize the risk and will only harm bona fide market participants without a good-standing authority.https://lawjournal.ub.ac.id/index.php/law/article/view/189virtual currencycryptocurrencydigital currencybitcoinfintech |
| spellingShingle | Soonpeel Edgar Chang Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency Brawijaya Law Journal virtual currency cryptocurrency digital currency bitcoin fintech |
| title | Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency |
| title_full | Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency |
| title_fullStr | Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency |
| title_full_unstemmed | Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency |
| title_short | Legal Status of Cryptocurrency in Indonesia and Legal Analysis of the Business Activities in Terms of Cryptocurrency |
| title_sort | legal status of cryptocurrency in indonesia and legal analysis of the business activities in terms of cryptocurrency |
| topic | virtual currency cryptocurrency digital currency bitcoin fintech |
| url | https://lawjournal.ub.ac.id/index.php/law/article/view/189 |
| work_keys_str_mv | AT soonpeeledgarchang legalstatusofcryptocurrencyinindonesiaandlegalanalysisofthebusinessactivitiesintermsofcryptocurrency |