Tracing Crypto Illegal Transactions in Indonesia: The Intersection of Forensic Technology and Legal Complexity

DOI

10.2991/978-2-38476-519-5_26How to use a DOI?

Keywords

crypto; illegal transactions; digital forensics; cyber law; regulation; blockchain forensics

Abstract

The crypto phenomenon has transformed the global financial order by offering a fast, efficient, and decentralized transaction system. However, behind this progress, vulnerabilities have emerged that are often exploited for illegal activities, such as money laundering, illicit trade, and terrorism financing. This study employed a normative legal research method, which was based on a literature review by analyzing laws and regulations, legal principles, and doctrines relevant to cybercrime and cryptocurrency. The approaches used included a legislative approach, a conceptual approach, and a case approach. The results of the study indicated that 1) the digital architecture of crypto, especially blockchain technology, although designed to be anonymous and decentralized, still left a digital footprint that could be analyzed. Through techniques such as address clustering, transaction flow tracking, and deanonymization processes, user activity in crypto networks could be traced systematically and structured. This opened up opportunities for uncovering illegal activities, even those carried out in seemingly hidden digital spaces; 2) the main challenges in combating crypto crime included limited legal jurisdiction, differences in regulations between countries, and difficulties in providing evidence due to the entirely digital nature of transactions. This complexity demanded regulatory reforms that were more responsive to the dynamics of digital technology, as well as increased capacity of law enforcement agencies; and 3) cross-sector synergy between parties with competencies in technology, law, and law enforcement was necessary to formulate a legal framework that was not only adaptive and data-driven but also capable of transcending national jurisdictional boundaries. Therefore, efforts to eradicate illegal crypto-based activities require strategic integration between digital forensic innovation and institutional strengthening within the legal system.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Resky Pradhana Romli
AU  - Adi Sulistiyono
AU  - Muhammad Rustamaji
PY  - 2025
DA  - 2025/12/29
TI  - Tracing Crypto Illegal Transactions in Indonesia: The Intersection of Forensic Technology and Legal Complexity
BT  - Proceedings of the 3rd International Conference on Law, Economics & good Governance (ICLAW 2025)
PB  - Atlantis Press
SP  - 329
EP  - 339
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-519-5_26
DO  - 10.2991/978-2-38476-519-5_26
ID  - Romli2025
ER  -