EVALUATION OF THE IMPLEMENTATION OF MONEY LAUNDERING CRIMINAL ACTS IN CRYTO TRANSACTIONS POLICIES AND REGULATIONS IN INDONESIA

Abstract

The rapid development of blockchain-based financial technology has significantly impacted the global economic system, including the emergence ofcryptocurrencies as digital investment and transaction instruments. Despite their potential, cryptocurrency pose a high risk for money laundering (ML) practices. This study aims to evaluate the implementation of anti-money laundering (AML) policies and regulations in cryptocurrency transactions in Indonesia by examining the effectiveness of supervision, the compliance of service providers and aligment with the Financial Action Task Force (FATF) standards.This research employs a normative juridical method with a conceptual and statutory approach, supported by secondary data from reports by Bappebti, OJK, PPATK, FATF, and national and international case studies. The findings indicate that Indonesia’s legal framework, through Law No. 8 of 2010 on the Prevention and Eradication of Money Laundering, Bappebti Regulation No. 8 of 2021 in conjunction with No. 9 of 2024, obliges cryptocurrency providers to implement Know Your Customer (KYC), Customer Due Diligence (CDD), and report suspicious transactions to PPATK. The transfer of cryptocurrency oversight from Bappebti to OJK and Bank Indonesia under Law No. 4 of 2023 (P2SK Law) represents a step toward integrated digital financial supervision.However, the effectiveness of implementation still faces challenges, including limitations in blockchain forensic technology, inter-agency coordination, and risks related to anonymity and cross-border transactions. Case studies of Binance (2023) and Tornado Cash (2022) highlight that cryptocurrency-based ML practices are global, requiring cross-jurisdictional cooperation, and underscore the urgency of strengthening Indonesia’s AML-CFT system. Overall, Indonesia’s regulations have moved toward FATF compliance but still require institutional harmonization, enhanced supervisory capacity, and legal adaptation to ongoing cryptocurrency innovations.