Legal Gaps and Enforcement Challenges in Addressing Digital Fraud Involving Cryptocurrencies as Tradable Commodities in Indonesia
Keywords:
cryptocurrency, law enforcement, regulatory ambiguity, investor protection, cross-border fraud, digital assets, IndonesiaAbstract
This paper critically examines the legal dimensions and institutional response to digital asset fraud in Indonesia, focusing on the ambiguities arising from the classification of cryptocurrencies as tradable commodities rather than lawful means of payment. Using a normative juridical approach and thematic literature synthesis, the study analyzes pump and dump, rug pull, and pyramid schemes within the current regulatory milieu, following the transition of crypto oversight from Bappebti to the Financial Services Authority and Bank Indonesia. The research finds that the lack of statutory specificity and regulatory harmonization impedes law enforcement efforts and undermines investor protection, particularly given the international and adaptive nature of digital asset transactions. Furthermore, systemic legislative gaps, technological lags in enforcement, and insufficiently integrated public education initiatives allow perpetrators to exploit these vulnerabilities. The study advocates for the urgent revision of legal definitions, harmonization of payment and commodity regulation, capacity-building in cross-border cooperation, and the integration of technological tools for detection and prevention. Strengthening legal clarity and institutional capacity is vital for safeguarding market participants and supporting the continued growth of a secure, innovative digital economy in Indonesia.
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