Volume 07 Issue 09 September 2024
1Isnaeni Tera Masitoh, 2Yunanto
1,2Faculty of Law, Universitas Diponegoro, Jl. Prof. Soedarto, SH., Semarang, Indonesia
DOI : https://doi.org/10.47191/ijsshr/v7-i09-35Google Scholar Download Pdf
ABSTRACT
One of the most widely adopted forms of information technology application today is electronic trade through the internet network to make transactions. This transaction system was initially centralized, but with the risk of system failure and hacking, distributed systems such as blockchain were developed to improve security and efficiency. Blockchain also gave birth to derivative technologies such as smart contracts, automated blockchain-based digital agreements. Despite offering many advantages, the anonymity and decentralization of smart contracts raise concerns of misuse for illicit activities such as money laundering. Therefore, regulatory updates in Indonesia are needed to regulate the validity of smart contracts and money laundering actions through this technology. This article analyses the validity and regulation of smart contracts and efforts to implement the AML system in blockchain-based transactions in Indonesia.
KEYWORDS:Blockchain technology; smart contracts; Indonesian law; money laundering; AML
REFERENCES1) Abdul Halim Barkatullah, E-Commerce Business, Yogyakarta: Pustaka Siswa 2005.
2) Alwendi, Penerapan E-Commerce Dalam Meningkatkan Daya Saing Usaha. Journal of Business Management Vol 17, No 3, 2022.
3) Heejung Kang et al, A Study on the Design of Smart Contracts Mechanism based on the Blockchain for anti-money laundering. Journal of Internet Computing and Services Vol 9, No 15, 2018
4) Ari Juels et al, The Ring of Gyges: Investigating the Future of Criminal Smart Contracts. Journal of Internet Computing and Services, Vol 9, No 15, 2018.
5) Destan Kirimhan. Importance of Anti-Money Laundering Regulations Among Prosumers for a Cybersecure Decentralized Finance. Journal of Business Research, Vol. 137, 2023
6) Heejung Kang, et al. A Study on the Design of Smart Contracts Mechanism Based on the Blockchain for Anti-Money Laundering. Journal of Internet Computing and Services, Vol. 9, No. 15, 2018.
7) Lim William, et al. Smart Contracts: Validitas Hukum dan Tantangan di Masa Depan Indonesia. Jurnal Kewarganegaraan, Vol. 8, No. 1, 2024.
8) Richardus Eko Indrajit, Smart Contract: Phenomena, opportunities and challenges in the consistency of the development of technology convergence 4.0, the material presented in the Webinar on Legal Solutions for the Development of Convergent Smart Contracts, organized by the Faculty of Law, Atma Jaya Yogyakarta 2022
9) Gladysha Indahcantika Mazalio, Problems of the application of smart contracts to the role and function of notaries in Indonesia (Indonesia Multidisciplinary Journal Vol 2, No 3, 2023
10) Achmad Busro, Covenant Law Based on Book III of the Civil Code (Semarang: Printing Tree of Light 2012) page 95
11) Andry Alamsyah et al, A Review on Decentralized Finance Ecosystems, Future Internet Vol 16 No 76 2024
12) Zecheng Li et al, Securing Deployed Smart Contracts and DeFi With Distributed TEE Cluster, IEEE Transactions on Parallel and Distributed Systems Vol, 34 No 3, 2023
13) Omar Farouq et al, Legal and Regulatory Aspects of Smart Contracts: A Systematic Review, Eurasian Journal of Management & Social Sciences 2023
14) Mohammad Hasan et al, Detecting Anomalies in Blockchain Transactions using Machine Learning Classifiers and Explainability Analysis, Blockchain Research and Applications, 2024
15) Abhishek Thommandru and Benarji Chakka, Recalibrating the Banking Sector with Blockchain Technology for Effective Anti-Money Laundering Compliances by Banks, Sustainable Future,s 2023
16) Destan Kirimhan, Importance of anti-money laundering regulations among prosumers for a cyber secure decentralized finance, Journal of Business Research, Vol 137, 2023
17) Vladlena Benson, Dark side of decentralized finance: a call for enhanced AML regulation based on use cases of illicit activities, Journal of Financial Regulation and Compliance Vol 13, No 1, 2024