Exploration of potential money laundering crimes with virtual currency facilities in Indonesia

Date19 May 2023
Pages985-994
DOIhttps://doi.org/10.1108/JMLC-01-2023-0010
Published date19 May 2023
AuthorMeiryani
Exploration of potential money
laundering crimes with virtual
currency facilities in Indonesia
Meiryani
Department of Accounting, Binus University, West Jakarta, Indonesia
Abstract
Purpose The purpose of this study is to explorationpote ntialmoney laundering crimes with virtual currency
facilities in Indonesia. Money laundering using crypto is the process of disguising the origin of money obtained
illegally. Then, the perpetrator transfers it to a legitimate business. Virtual money then started to become a
phenomenon in society since the emergence of cryptocurrencies as a form of technology development of
e-commerce activities.
Design/methodology/approach This research method is normative law which is prescriptive. The
data collection technique used is document study or literature study by collecting primary and secondary
legal materials.
Findings The results of this study show that the bitcoin virtual currency has the potential to act as a
means of money laundering. There are technologies and online platforms that are moving with more
sophisticated methods. Throughbitcoin exchanges, it has the greatest potential for money laundering. The
usage of virtual currency(cryptocurrency) by those who commit money laundering offensesis responsible for
the actionsseverenegative effects on the State of Indonesia.
Originality/value To the best of the authors knowledge, this is the f‌irst study conductedin Indonesia
that explorespotential money-laundering crimes using virtualcurrency facilities.
Keywords Money Laundering, Bitcoin, Crime, Cryptocurrency
Paper type Research paper
Introduction
The widespread adoption of bitcoin is generating a lot of curiosity and is regarded as a f‌inancial
industry breakthrough. Cryptocurrency(CC) has given life a new meaning in the rapidly evolving
modern day. The current paradigm is def‌initelyintriguing because it is thought to be free from the
established conventional patterns. The expression of technology advancements in e-commerce is
CC (Albrecht et al., 2019). Bitcoin is a form of digital currency or CC (Reynolds and Irwin, 2017). Its
use is decentralized, meaning that it is permissible in every nation without the consent of the
central bank. Because its value is highly calculated in the online world in the different types of
payments for both legal and illegal goods, bitcoin can also be used as a transaction tool
(Teichmann and Falker,2021a, 2021b).
The existence of bitcoin is often used on several illegal and accessible sites that can only be
accessed via the deep web to the dark web (Irwin and Milad, 2016). Of course this is a threat to
stability and legal banking in every country (Wronka, 2022a,2022b,2022c). Diff‌iculties of course
arise when examining transactions using bitcoin (Brown, 2016). With the basis of the cyber world
as a place for bitcoin, threats will emerge for institutions that examine f‌inancial transactions
This study is supported by the Ministry of Education, Culture, Research and Technology Indonesia
as a part of the Research Grant of World Class Professor 2022 (WCP 2022) entitled Exploration of
potential money laundering crimes with virtual currency facilities in Indonesia
Money
laundering
crimes
985
Journalof Money Laundering
Control
Vol.27 No. 6, 2024
pp. 985-994
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2023-0010
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm

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