Amalia Salsabila Torina

Legal Gaps in Virtual Currency Investor Protection in Indonesia

Introduction

Legal gaps in virtual currency investor protection in indonesia. Examines legal gaps in Indonesia's virtual currency investor protection, identifying regulatory contradictions, fraud risks, and recommending stronger laws and education for clarity.

Abstract

This study examines the legal gaps governing cryptocurrency investment in Indonesia, identifying issues that arise due to unclear regulations, including potential fraud and risks for investors. By referring to Law No. 7 of 2011, PBI No. 18/40/PBI/2016, and Bappebti Regulation No. 5 of 2019, this article shows how the existence of contradictions in regulations can cause confusion among investors, especially for those who do not have a deep understanding of the legal aspects of investment. In addition, this article recommends various efforts that can be made to improve legal protection for investors, including strengthening regulations through special laws, education and training for investors, and collaboration between the government and related parties. The results of this study are expected to provide insight for policymakers and investors regarding the importance of clear regulations and better protection in virtual currency investment.

Review

This timely study rigorously addresses the critical issue of legal gaps in virtual currency investor protection within Indonesia, a rapidly evolving and inherently volatile sector. The abstract clearly articulates the paper's primary objective: to meticulously examine the inadequacies and contradictions within existing Indonesian legal frameworks that govern cryptocurrency investments. By highlighting the resultant issues of potential fraud and heightened risks for investors, especially those lacking deep legal understanding, the research underscores a significant and pressing problem for both individual market participants and the regulatory ecosystem. The central premise that unclear and contradictory regulations sow confusion and undermine investor confidence is a compelling starting point for this analysis. The methodology appears grounded in a direct legal textual analysis, referencing key national statutes and regulations, specifically Law No. 7 of 2011, PBI No. 18/40/PBI/2016, and Bappebti Regulation No. 5 of 2019. This direct engagement with the regulatory landscape is a strength, as it allows the study to pinpoint exact contradictions that contribute to investor uncertainty. The finding that these regulatory inconsistencies disproportionately affect less-informed investors provides a crucial insight into the practical implications of legal ambiguity. By systematically identifying these legislative misalignments, the paper lays a robust foundation for understanding the current challenges in protecting virtual currency investors. The study concludes by proposing a set of practical and multi-faceted recommendations aimed at enhancing investor protection. These include strengthening the regulatory environment through the enactment of special laws, implementing comprehensive investor education and training programs, and fostering greater collaboration among government agencies and other relevant stakeholders. These recommendations are pertinent and forward-looking, offering actionable pathways for policymakers. The anticipated impact—providing valuable insights for both policymakers and investors—is well-justified, positioning this research as a significant contribution to ongoing discussions surrounding regulatory reform and investor safeguarding in the dynamic realm of virtual currency.

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