Cryptocurrency-Based Money Laundering: Legal Gaps and New Threats in the Digital Financial World

Universitas Pendidikan Gannesha, Singaraja, Indonesia

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Abstract

The development of crypto technology brings new risks in the form of digital money laundering. This study aims to identify the methods of crypto-based money laundering, analyze the weaknesses in Indonesia’s current legal framework, and formulate recommendations for legal reform. The main legal issues examined in this study include the lack of specific legal norms addressing cryptocurrency-based money laundering, and the regulatory disharmony between financial supervisory institutions in Indonesia. A juridical-normative method is applied, analyzing various national laws and international guidelines such as the FATF Travel Rule. The study also uses a conceptual approach to understand the nature of cryptocurrency and blockchain, and how they interact with the legal system. The study highlights the anonymity, decentralized nature, and rapid transaction speed of crypto assets that challenge law enforcement. The study results indicate the need for specific laws, enhancement of the technical capacity of officials, and cross-border cooperation so that Indonesia is prepared to face the increasingly evolving digital asset-based financial crimes.