The Role of Bank Indonesia in Supervising Virtual Currency Transactions

Oct 13, 2025 by windailys.com 1 views

Introduction

The rapid development of digital technology has given birth to innovations in the form of virtual currencies, which are now increasingly popular among the people. However, the emergence of this phenomenon also raises various legal issues, especially related to the regulations and policies governing them. In Indonesia, the use of virtual currencies as a means of payment dealing directly with the provisions of Law Number 7 of 1999 concerning Currency, which states that the currency must meet certain criteria so that it can be considered valid. Considering the virtual currency operates in a digital space, it does not meet the definition as a legal currency according to applicable law.

The use of virtual currencies has become a significant challenge for Bank Indonesia, as an institution and monetary authority in Indonesia, in maintaining monetary stability and financial system. This is confirmed in Article 10 of Law Number 23 of 1999 concerning Bank Indonesia. As a monetary authority, Bank Indonesia has the responsibility to oversee and manage monetary traffic, including supervising transactions that use virtual currencies. However, the challenge faced is the lack of legality and legal basis for virtual currencies, which makes it an unauthorized means of payment in Indonesia.

The Role of Bank Indonesia in Supervising Virtual Currency Transactions

Bank Indonesia, as a monetary authority, has an important task in maintaining monetary stability and financial system. This is confirmed in Article 10 of Law Number 23 of 1999 concerning Bank Indonesia. As a monetary authority, Bank Indonesia has the responsibility to oversee and manage monetary traffic, including supervising transactions that use virtual currencies. However, the challenge faced is the lack of legality and legal basis for virtual currencies, which makes it an unauthorized means of payment in Indonesia.

In this context, it is essential to understand and analyze the rule of law related to the use of virtual currencies in Indonesia. This study uses normative research methods, with qualitative data analysis approaches and field research. The results showed that transactions that use virtual currencies in Indonesia are illegal. The virtual currency does not have a clear legal basis and is not recognized as a legal payment tool in electronic transaction activities, in accordance with the provisions of Law Number 7 of 2011 concerning Currency and Law Number 23 of 1999 concerning Bank Indonesia.

Challenges in Supervising Virtual Currency Transactions

One of the main challenges in supervision of virtual currencies is the limited access to Bank Indonesia and the Financial Services Authority (OJK) on transaction data carried out by virtual currency users. This makes it difficult for the authorities to detect and supervise the transaction, given the nature of digital transactions that are often closed and anonymous. Therefore, concrete steps are needed from the government and related institutions to strengthen the supervision of the use of virtual currencies in Indonesia.

Recommendations for Strengthening Supervision of Virtual Currency Transactions

Recommendations that can be submitted include a revision of existing regulations, especially Law Number 7 of 2011 concerning Currency, by adding clear provisions regarding the prohibition on the use of virtual currencies. In addition, the authorized institution also needs to make regulations that allow blocking to the sites of buying and selling service providers or exchange of virtual currencies that do not comply with legal provisions in Indonesia. With these steps, it is hoped that a safer and guaranteed monetary environment can be created, and provide legal certainty for the community in transactions.

Conclusion

With this analysis, it is expected that the reader can understand the complexity of legal issues related to virtual currencies in Indonesia and the importance of the role of Bank Indonesia in maintaining monetary stability and financial systems in this digital era. Synergistic cooperation is needed between the government, supervisory agencies, and the community to create a healthy financial ecosystem and comply with applicable law.

Future Research Directions

Future research directions can focus on the following areas:

Regulatory Framework: A comprehensive review of the regulatory framework governing virtual currencies in Indonesia is necessary to identify areas for improvement.
Supervision and Enforcement: The effectiveness of supervision and enforcement mechanisms in regulating virtual currencies needs to be evaluated.
Public Awareness: Public awareness campaigns can be conducted to educate the community about the risks and benefits associated with virtual currencies.
International Cooperation: International cooperation and collaboration with other countries can be strengthened to address the global challenges posed by virtual currencies.

Limitations of the Study

This study has several limitations, including:

Scope: The study focuses on the legal aspects of virtual currencies in Indonesia and does not consider other relevant factors such as economic and social impacts.
Data: The study relies on secondary data sources, which may not be comprehensive or up-to-date.
Methodology: The study uses a qualitative approach, which may not be suitable for all research questions.

Implications of the Study

The findings of this study have several implications for policymakers, regulators, and the community:

Regulatory Framework: The study highlights the need for a comprehensive regulatory framework governing virtual currencies in Indonesia.
Supervision and Enforcement: The study emphasizes the importance of effective supervision and enforcement mechanisms in regulating virtual currencies.
Public Awareness: The study suggests that public awareness campaigns can be conducted to educate the community about the risks and benefits associated with virtual currencies.
International Cooperation: The study recommends strengthening international cooperation and collaboration with other countries to address the global challenges posed by virtual currencies.

Recommendations for Future Research

Future research can focus on the following areas:

Regulatory Framework: A comprehensive review of the regulatory framework governing virtual currencies in Indonesia is necessary to identify areas for improvement.
Supervision and Enforcement: The effectiveness of supervision and enforcement mechanisms in regulating virtual currencies needs to be evaluated.
Public Awareness: Public awareness campaigns can be conducted to educate the community about the risks and benefits associated with virtual currencies.
International Cooperation: International cooperation and collaboration with other countries can be strengthened to address the global challenges posed by virtual currencies.

Conclusion

In conclusion, this study provides a comprehensive analysis of the legal issues related to virtual currencies in Indonesia. The study highlights the importance of a comprehensive regulatory framework, effective supervision and enforcement mechanisms, public awareness campaigns, and international cooperation in regulating virtual currencies. The findings of this study have several implications for policymakers, regulators, and the community, and provide recommendations for future research directions.

Q1: What is the current legal status of virtual currencies in Indonesia?

A1: The current legal status of virtual currencies in Indonesia is that they are not recognized as a legal payment tool in electronic transaction activities, in accordance with the provisions of Law Number 7 of 2011 concerning Currency and Law Number 23 of 1999 concerning Bank Indonesia.

Q2: What is the role of Bank Indonesia in supervising virtual currency transactions?

A2: Bank Indonesia, as a monetary authority, has the responsibility to oversee and manage monetary traffic, including supervising transactions that use virtual currencies. However, the challenge faced is the lack of legality and legal basis for virtual currencies, which makes it an unauthorized means of payment in Indonesia.

Q3: What are the challenges in supervising virtual currency transactions?

A3: One of the main challenges in supervision of virtual currencies is the limited access to Bank Indonesia and the Financial Services Authority (OJK) on transaction data carried out by virtual currency users. This makes it difficult for the authorities to detect and supervise the transaction, given the nature of digital transactions that are often closed and anonymous.

Q4: What are the recommendations for strengthening supervision of virtual currency transactions?

A4: Recommendations that can be submitted include a revision of existing regulations, especially Law Number 7 of 2011 concerning Currency, by adding clear provisions regarding the prohibition on the use of virtual currencies. In addition, the authorized institution also needs to make regulations that allow blocking to the sites of buying and selling service providers or exchange of virtual currencies that do not comply with legal provisions in Indonesia.

Q5: What is the importance of public awareness in regulating virtual currencies?

A5: Public awareness campaigns can be conducted to educate the community about the risks and benefits associated with virtual currencies. This can help to prevent the misuse of virtual currencies and promote a safer and more secure financial environment.

Q6: What is the role of international cooperation in regulating virtual currencies?

A6: International cooperation and collaboration with other countries can be strengthened to address the global challenges posed by virtual currencies. This can help to establish a common regulatory framework and promote a safer and more secure financial environment.

Q7: What are the implications of the study for policymakers, regulators, and the community?

A7: The findings of this study have several implications for policymakers, regulators, and the community, including the need for a comprehensive regulatory framework, effective supervision and enforcement mechanisms, public awareness campaigns, and international cooperation.

Q8: What are the limitations of the study?

A8: The study has several limitations, including the scope of the study, which focuses on the legal aspects of virtual currencies in Indonesia and does not consider other relevant factors such as economic and social impacts. The study also relies on secondary data sources, which may not be comprehensive or up-to-date.

Q9: What are the future research directions?

A9: Future research directions can focus on the following areas:

Regulatory Framework: A comprehensive review of the regulatory framework governing virtual currencies in Indonesia is necessary to identify areas for improvement.
Supervision and Enforcement: The effectiveness of supervision and enforcement mechanisms in regulating virtual currencies needs to be evaluated.
Public Awareness: Public awareness campaigns can be conducted to educate the community about the risks and benefits associated with virtual currencies.
International Cooperation: International cooperation and collaboration with other countries can be strengthened to address the global challenges posed by virtual currencies.

Q10: What is the conclusion of the study?

A10: In conclusion, this study provides a comprehensive analysis of the legal issues related to virtual currencies in Indonesia. The study highlights the importance of a comprehensive regulatory framework, effective supervision and enforcement mechanisms, public awareness campaigns, and international cooperation in regulating virtual currencies. The findings of this study have several implications for policymakers, regulators, and the community, and provide recommendations for future research directions.