Law and Digitalization: Cryptocurrency as Challenges Towards Indonesia's Criminal Law

Authors

DOI:

https://doi.org/10.15294/ijcls.v10i1.22557

Keywords:

Criminal Act, Cryptocurrency, Penal Policy

Abstract

The advancement of science and technology continues to accelerate. Internet and its supporting technology became the backbone for many activities. This kind of advancement goes beyond territorial boundaries and human’s intelligence. This phenomenon triggers a new crime model. One of them is a crime related to the existence of Cryptocurrency such as money laundering, terrorism financing, and other forms of crime. This is understood given that Cryptocurrency give rise to large number of crimes as well as the emergence of a new modus operandi in several criminal acts. This is further supported by the lack of current Indonesian regulations that do not specifically accommodate the Cryptocurrency mechanism. The main issues raised in this study are related to how crimes and new modus operandi are caused by the Cryptocurrency mechanism against Indonesian criminal law, as well as how the mechanism of crime prevention and handling caused by the Cryptocurrency mechanism through the means of penal policy, covering targeted legislative amendments, specialised investigative units, prosecutorial guidelines, and asset-seizure procedures—to prevent and combat such crimes. This article uses normative method to answer the problem through comparative approach, case approach, literary approach and statutory approach. Initial hypotheses proposed to address these problems are: First, Cryptocurrency as a financial transaction mechanism that relies on the computational system with anonymous transactions opens a great opportunity for crime in the mechanism of the transaction. Second, the establishment of new rules in order prevent and combat crime and the modus operandi caused by the Cryptocurrency mechanism through the mechanism of penal policy are essential.

Author Biographies

  • David Hardiago, Faculty of Law Universitas Islam Riau

    He is a lecturer, researcher, and Advocate/Legal Consultant affiliated with the Criminal Law Department, Faculty of Law, Islamic University of Riau. Active in conducting research with a focus in the field of Criminal Law, with several publications including: First, self-plagiarism and the principle of legality. Second, Corporations as Subjects in Criminal Acts in the Copyright Sector. Third, Comparative Study of Palgiarism Regulations in the Copyright Law and Criminal Code. The author can be reached via email: [email protected]. For further publications of the author can be accessed through Id Scopus. 58772147500, ID Sinta. 5892960 &  https://orcid.org/0000-0002-8350-134X.

  • Rani Fadhila Syafrinaldi, Faculty of Law, Universitas Islam Riau

    She is a lecturer, researcher, and Advocate/Legal Consultant affiliated with the Department of Business Law, Faculty of Law, Islamic University of Riau.  Carrying out several research with specifics in the field of Intellectual Property Law (IPR) and its relationship with technology, innovation and business. The author can be reached via email: [email protected] For further publications of the author can be accessed via Id Scopus. 59374730200, ID Sinta. 6905741 & https://orcid.org/0009-0002-2189-8377.

  • Syafrinaldi, Faculty of Law, Universitas Islam Riau

    He is affiliated with the Postgraduate School of Riau Islamic University and has conducted several research projects and published articles, some of which are related to this research article. These include: first, Corporations as Subjects in Criminal Acts in the Copyright Sector; second, Comparative Study of Plagiarism Regulations in Copyright Law and the Criminal Code; and third, Artificial Intelligence in Intellectual Property Law in the Field of Patents. He can be reached via email at [email protected]. Further publications by him can be accessed through Scopus ID: 58363300400, Sinta ID: 258281, and ORCID: https://orcid.org/0000-0002-4064-1756.

  • M. Musa, Faculty of Law, Universitas Islam Riau

    He is a lecturer and researcher affiliated with the Department of Criminal Law, Faculty of Law, Riau Islamic University. Active in conducting research with the main focus in the field of Criminal Law. The author can be reached via email: [email protected] For further publications of the author can be accessed via Id Sinta. 6058236 & https://orcid.org/0000-0003-3349-3027.

  • Kim Hyeonsoo, School of Law, INHA University Seoul

    Prof. Kim Hyeonsoo which is affiliated with the School of Law Inha University (Seoul – South Korea), has conducted several research and published articles, some of which are related to this research article, namely: First, Public of Criminal Fact in Investigative Agency and Personal Information Protection. Second, Study on Result of Operation in Special Private Security Guard System in Youth Detention Center. Third, A Study on Management System of Gambling Addiction- Focused on Online Gambling Regulation in Australia.

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Published

2025-06-13

Article ID

22557

Issue

Vol. 10 No. 1 (2025): Indonesia J. Crim. L. Studies (May, 2025)

Section

Articles

How to Cite

Law and Digitalization: Cryptocurrency as Challenges Towards Indonesia’s Criminal Law. (2025). Indonesian Journal of Criminal Law Studies, 10(1), 297-340. https://doi.org/10.15294/ijcls.v10i1.22557