Legal Liability for the Misuse of Crypto Assets in Money Laundering Crimes in Indonesia

Rayhan Mohammad
Imam Suroso
Karim
Rayhan Mohammad: Universitas Bhayangkara Surabaya
Imam Suroso: Universitas Bhayangkara Surabaya
Karim: Universitas Bhayangkara Surabaya

Abstract

The development of blockchain technology and cryptocurrency has generated significant innovation in the financial sector, yet simultaneously presents potential for misuse in money laundering offences. This study aims to analyse legal accountability for cryptocurrency asset misuse in money laundering crimes in Indonesia. Employing a normative juridical method with conceptual and comparative approaches, this research examines domestic regulations and compares them with international practices in the United States, European Union, and Singapore. The findings indicate that Indonesia faces a substantial legal gap, as Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering does not explicitly address the unique characteristics of blockchain-based crypto assets. Bappebti Regulation Number 8 of 2021 and OJK Regulation Number 5/POJK.04/2019 merely regard cryptocurrency as trading commodities rather than criminal objects. The anonymity and decentralised nature of cryptocurrency complicate the proof of actus reus and mens rea elements, whilst law enforcement capacity in digital forensics remains limited. This research recommends reform of the Criminal Code and Law Number 8 of 2010 to explicitly incorporate digital assets, strengthening law enforcement capacity in blockchain analysis, harmonisation with FATF standards, and developing inter-agency coordination to establish a legal system responsive to financial technology challenges.