Analysis of Legal Protection for Consumers in Cryptocurrency Transactions on Abusive Practices by Trading Platforms in Indonesia

Abstract

This research discusses the development of information technology and economic digitalization has given rise to cryptocurrency as one of the innovations in the global financial sector. Cryptocurrencies are gaining popularity in Indonesia, both as an investment instrument and as a commodity that is traded on various trading platforms. However, the rise of cryptocurrency use also raises various legal challenges, especially related to consumer protection. Cryptocurrency transactions have unique characteristics, such as being digital, decentralized, and anonymous, thus posing a risk of abuse by trading platforms, including fraud, market manipulation, and breach of contract. This condition is exacerbated by the lack of specific regulations and weak supervision at the beginning of the development of crypto assets in Indonesia. This study aims to analyze the forms of legal protection available to consumers in cryptocurrency transactions in Indonesia, identify the factors that cause abuse by trading platforms, and evaluate the effectiveness of the role of the Financial Services Authority (OJK) in providing legal protection. Through a normative juridical approach supported by empirical studies, this study found that legal protection for consumers in cryptocurrency transactions in Indonesia still requires strengthening regulations, especially in terms of information transparency, dispute resolution mechanisms, and supervision of trading platforms. The transfer of regulatory and supervisory duties from Bappebti to the OJK and Bank Indonesia in 2025 is an important step to strengthen legal protection and create legal certainty for consumers. The results of this research are expected to be input for the government, OJK, and stakeholders in formulating regulations and policies that are more adaptive to the dynamics of the cryptocurrency market, so as to be able to protect consumer rights and support the development of a healthy and sustainable digital financial sector.