CRYPTOCURRENCY AND CONSTITUENCY: UNDERSTANDING THE EXISTENCE OF BITCOIN AND ITS REGULATION IN INDONESIA
ELVEN, TAREQ MUHAMMAD AZIZ
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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..