Legal Protection for Cryptocurrency Users as a Commodity in Indonesia

Abstract

Technological advances require the whole world to participate in its development, especially cryptocurrencies that are happening all over the world. Bitcoin virtual currency is an exceptional virtual currency. Indonesia still lacks clear rules about the legal basis that bridges the existence of the Bitcoin cryptocurrency. So far, Cryptocurrency as a payment in Indonesia is prohibited and only allowed as a commodity. However, there are no binding regulations in this regard. The data collection and analysis method in this research uses the literature search analysis method that aligns with the latest phenomena related to Bitcoin cryptocurrency. The primary legal source is the Law, and the other is the Law. The problem in this research is finding out the legality and legal action for cryptocurrency users in Indonesia. Based on this research, Bitcoin cryptocurrency positioning in Indonesia is defined solely as a trading subject regulated by Law Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market. From this, we can conclude whether the Indonesian state has not allowed the circulation of the Bitcoin cryptocurrency as a virtual currency or a means of payment in Indonesia. However, the Commodity Futures Trading Regulatory Agency (BAPPEBTI) Regulation No. 5 of 2019 concerning Technical Regulations for the Management of the Physical Market for Crypto Assets on the Futures Exchange describes Bitcoin as a cryptocurrency as a commodity or investment in Indonesia.