Legal Protection of Cryptocurrency Investors' Assets on Indonesian Cryptocurrency Exchanges

Nabila Hamza
Siti Ngaisah
Nabila Hamza: Universitas Bhayangkara Surabaya
Siti Ngaisah: Universitas Bhayangkara Surabaya

Abstract

Advances in the digital era and the development of economic activities within human existence have also become a significant focus. Due to the widespread use of the internet and social media in the country, Indonesia's digital economy is considered to have substantial potential for growth. Within this context, the economy in the digital era serves as evidence that growth and development continue to advance. Consequently, an increasing number of commercial activities and business transactions utilize the internet as a digital medium for communication, collaboration, and joint ventures among individuals or businesses. Cryptocurrency is one of the innovations that currently facilitates people in conducting virtual commercial transactions. Cryptocurrency is a technique that employs a cryptographic technology system to support processes involving cryptocurrency as a digital asset. The Greek words graphein, meaning "to write" or "science," and kryptó, meaning "hidden" or "secret," are the origins of the terms cryptology and cryptography. In this regard, this study aims to examine the legal framework governing the validity of the use of crypto assets in the form of Bitcoin as a transaction instrument by considering the provisions of the Currency Law, the Electronic Information and Transactions Law, and Bank Indonesia Regulations. Furthermore, it seeks to identify whether losses incurred from crypto assets are entitled to protection under civil law rights.