Legal Protection for Bitcoin Users in E-commerce Transactions (original) (raw)

LEGAL PROTECTION AGAINST CONSUMER ELECTRONIC TRANSACTIONS IN INDONESIA

The qualitative research through the phenomenological approach, the results of the study showed that: protection of the parties in e-commerce transactions and specifically giving the customer a coverage in e-commerce transactions, Need to make legal regulations regarding cyber law including so that the provisions on e-commerce transactions can be displayed. With these arrangements, the rights of consumers as electronic technology users in the trading process, especially in conducting e-commerce transactions, can be more secure. For consumer protection in e-commerce transactions are not yet accommodation in the consumer protection ACT. This is because of the characteristic of special e-commerce transactions, especially the transnational Transkei that crosses the boundaries of applicable national law. They must address legal arrangements about electronic transactions in Indonesia from the rules of legal certainty so that society believes in conducting electronic transactions. And they involve the government in the handling of criminal cases in cyberspace in electronic transactions in particular.

Legal Analysis of Cryptocurency Utilization in Indonesia

Rechtsnormen Journal of Law

Background. Bitcoin is the world's first digital currency that uses the concept of Cryptocurrency, which is a digital asset designed as a medium of exchange using cryptographic techniques to secure transactions and control the administration of its currency units that are likely to continue to grow in the future. Based on Law No. 7 of 2011 on Currency or cryptocurrencies, Bitcoin cannot be considered as legal tender in Indonesia. Purpose. It is said to be a means of payment because the means of payment in Indonesia is the Rupiah, but based on the Regulation of the Minister of Trade of the Republic of Indonesia Number 99 of 2019, crypto assets are one of the commodities that can be used as the subject of futures contracts traded on futures exchanges. Method. his research uses a statute approach. In addition, a case approach is also used to find out the ratio decidendi used by the Constitutional Court judges in deciding cases of judicial review of laws related to indigenous people...

Cryptocurrency and Constituency: Understanding the Existence of Bitcoin and Its Regulation in Indonesia

The development of E-Commerce in the world has impacted to the payment system which requires such fast, secure, and private. In 2008, a new payment method was introduced by Satoshi Nakamoto which called Bitcoin. Bitcoin is a series of programming code that secured by using cryptographic method as a peer-to-peer virtual and independent currency. Since its launching in 2009, it has generated volumes of debate in economic press whether will Bitcoin be an opportunity or merely a disruptive innovation in the future. Besides, the legality of Bitcoin in Indonesia is also questionable. The fact in the field approximates Bitcoin users in Indonesia reached 700,000 in the late 2017. According to the Article 1 of Indonesian Currency Law 2011, Currency is a money which issued by the State. Meanwhile, Bitcoin is not completed that qualification due to the independent issuance of it. Conjointly, Cybercriminals are attracted to choose Bitcoin as the currency in crime. It is because the distinctive characteristics of decentralization and pseudo-anonymity in general, and yet Bitcoin has assessed as representing only a low money laundering risk. By using secondary data and juridical-normative method, the research aims to analyze the legal existence of Bitcoin as a new payment method in the form of virtual currency and to provide best solutions for preventing disadvantages resulted from Bitcoin's existence itself. Furthermore, the research also highlights three strong factors should be settled by Indonesian government in dealing Bitcoin's matters i.e. demystifying of Bitcoin concept, providing strict substantial provision in preventing Cryptocurrency misuse, and promoting the awareness among criminal justice professionals and law enforcement officers.

Legality of Cryptocurrency in Indonesia

The existence of cryptocurrency has attracted controvercies world wide. Many people, including Indonesian, had benefit from cryptocurrency, meanwhile there were also more people suffered lost from "investment" in cryptocurrency. The aim of this research was to make clear the legal status of cryptocurrency in Indonesia. This research was a normative legal research. It conducted literature review to obtain the required data. Data obtained and used in this research were secondary data, which consisted of primary, secondary and tertiary legal documents. Data obtained from literature review were analysed using normative comparative method with qualitative approach. The result proved that as currency, the existence of cryptocurrency for payment was legally prohibited. The involvement of Indonesian citizen in the "investment" in form of crytocurrency can be treated as against public policy even though the issuance of such cryptocurrency was subject to foreign applicable laws.

The Urgent Need to Amend the Indonesian Law on Currencies to Face the Digital Age

Journal of Central Banking Law and Institutions

This research focuses on Indonesian Law No. 7 of 2011 on Currency. Over the past ten years, information technology has developed so rapidly that it has been necessary to take another look at whether this law is still relevant now and in the near future. The research uses normative legal analysis methods with a conceptual approach, analytical approach, comparative approach across multiple countries, and case studies. The rapid development has left the law behind when addressing violations of the currency law. To eliminate ambiguity and hesitation in the implementation of the use of currency, this law must be amended. It is necessary to establishclear laws on digital money or electronic money (e-money), which is currently only regulated at the level of Bank Indonesia and Bank Indonesia Circular Letter. The use of foreign currency in border markets and places of foreign tourists, money in some places due to technological advances, and about the local wisdom of a society that has a hist...

Cryptocurrency: Highlighting the Approach, Regulations, and Protection in Indonesia and European Union

BESTUUR

The speed of the adoption and use of cryptocurrency that utilizes blockchain technology as its central infrastructure is expanding globally, including in Indonesia. It has promising prospects as a future asset and payment instrument. However, the regulations in Indonesia are often delayed and inadequate for dealing with cryptocurrency's developments. This research is intended to analyze the approaches, regulations, and protection of the use of cryptocurrency. This study argues that the regulatory approach to using cryptocurrency is balanced, while Indonesia has a partial status in cryptocurrency legality. The government’s protection of cryptocurrency investors is adequate in using cryptocurrency as a commodity traded on futures exchanges with a license from Bappebti. A progressive policy for establishing the Digital Asset Law by the government is important due to the resultant clarity in the regulatory status of cryptocurrency will allow the ecosystem to grow and promote innovat...

Indonesian Cryptocurrencies Legislative Readiness: Lessons from the United States

Sriwijaya Law Review

Cryptocurrencies can facilitate cross-border global transfers easily and pseudonymously. It can be converted into fiat currencies, making it suitable for money laundering crimes. This study compared legal regulations in the United States that analysed the readiness of regulations and Indonesia's legal loopholes in responding to the development of the cryptocurrency business. As a result, cryptocurrency in Indonesia is susceptible to being used as a money-laundering tool due to the novelty of the technology, the anonymity it provides its users, and the immaturity of the regulations governing it. Therefore, it is necessary to create a cryptocurrency that can follow the “Travel Rule” and collect and share information about the people who send and receive cryptocurrency, like in the US. The study also argues that passive detection is used to detect the identity of cryptocurrency users through a centralised service. However, several cryptocurrency developers have responded to the inc...

Consumer Protection in E-Commerce Transactions in Indonesia

Journal of Law, Policy and Globalization, 2016

The history of e-commerce in Indonesia has been known since 1996 with the advent of http://www.sanur.com/ sites as the first on-line bookstores. Although it was not too popular, in 1996 it started popping up various sites that perform e-commerce. Throughout the years 1997 – 1998, the existence of e-commerce in Indonesia a little bit neglected because of the economic crisis. Since 1999 until the present, e-commerce has re-become a interesting phenomenon although it remains limited to a minority of the Indonesian people are familiar with the technology. Article 1313 of the Civil Code defines "agreement is as an act pursuant to which one or more individual bind themselves to one another". It means that the parties of the agreement in real life are the same as with the parties involved in an e-commerce agreement. The requirement of the validity of treaty is also no different. The requirement is "must be conset of the individuals who are bound; must be capacity to enter in...

The Perspective of Islamic Law on Cryptocurrency for Commodity Future Exchange in Indonesia

Journal of Islamic Studies and Culture, 2020

Crypto currency is virtual money that is in cyberspace and has no concrete forms. Some types of Crypto currency include ripple, ethereum, litecoin, monero, zcash, and bitcoin. The use of bitcoin as a means of payment in online trading transactions in the era of disruption 4.0 became widespread and unstoppable, even though the Government has banned the practice. This study aims to get an overview of the bitcoin Crypto currency, implementation of online goods and services transactions, and the validity of its use in commodity futures trading according to the perspective of Islamic law. This research is a literature study and is qualitative. The data analysis technique used is descriptive-analytical with a normative juridical Islamic law approach. The results show that the implementation of online buying and selling transactions using bitcoin in Indonesia is following Islamic law because the terms, conditions, and procedures for using bitcoin are not much different from online transactions using e-money in general. Bitcoin cannot be used as a commodity in Sharia Derivative Contracts, because it still contains speculative elements (maysir) that are chancy.

The future of cryptocurrency legality in Indonesia

Journal of Economics and Business Letters

Cryptocurrency is a form of payment for goods and services that can be made online. Many companies have issued their own currency, often called tokens, and traded specifically for the goods or services their company provides. Currently, blockchain technology can be implemented in various elements, including, financial services, smart property, IoT, smart contracts, blockchain government, blockchain identity. In Indonesia, cryptocurrencies are interpreted as crypto assets that can only be traded on futures exchanges. There are 229 cryptocurrencies recognized in Indonesia. The legality of using Cryptocurrencies in Indonesia can only be traded on futures exchanges, as stated in the regulation of the Commodity Futures Trading Supervisory Agency (BAPPEBTI) number 5 of 2019 and the Commodity Futures Trading Supervisory Agency Regulation Number 7 concerning the Establishment of a List of Crypto Assets that can be Traded in the Physical Crypto Asset Market.