Prosecutorial Discretion in Tackling the Cryptocurrency Crime in Indonesia

Data, reports, and information show that cryptocurrency has supported certain parties as a convenience, whereas the purpose of cryptocurrency is to minimize the weaknesses of conventional money systems in international relations in the current era of globalization. Countries that cannot represent or apply autonomous law in facing cryptocurrency challenges, because it is feared it is increasingly difficult to overcome global cryptocurrency crime. It is precisely in eradicating cryptocurrency crime, law enforcement authorities, priorities of prosecutors who have the highest supremacy in the field of prosecution and other discretion in law enforcement must be dynamic in law enforcement against facilitators from responses to social needs and aspirations, in accordance with legal considerations must acknowledge the wishes of the community and agree in achieving substantive justice. Considering that virtual currency has been banned in Indonesia but crypto-asset trading on the futures exchange has been in force, responsive discretionary prosecutions are needed in combating cryptocurrency crime in Indonesia. Liability that exceeds liability based on faults, namely strict liability, vicarious liability, and secondary liability to any parties that cause cryptocurrency crime can be applied to the mechanism of "follow the money" and "trace the information and communication technologies (ICTs) footprint". It is hoped that prosecution discretion by the prosecutor can reach to the monitoring of suspicious "nodes" and monitoring the registration of ICTs that are vulnerable to cryptocurrency crimes, such as laptops, cellphones, computers, and SIM cards, in providing a deterrent effect to the perpetrators of cryptocurrency crime.

Trade or Trick?

The prosperity of the cryptocurrency ecosystem drives the need for digital asset trading platforms. Beyond centralized exchanges (CEXs), decentralized exchanges (DEXs) are introduced to allow users to trade cryptocurrency without transferring the custody of their digital assets to the middlemen, thus eliminating the security and privacy issues of traditional CEX. Uniswap, as the most prominent cryptocurrency DEX, is continuing to attract scammers, with fraudulent cryptocurrencies flooding in the ecosystem. In this paper, we take the first step to detect and characterize scam tokens on Uniswap. We first collect all the transactions related to Uniswap V2 exchange and investigate the landscape of cryptocurrency trading on Uniswap from different perspectives. Then, we propose an accurate approach for flagging scam tokens on Uniswap based on a guilt-by-association heuristic and a machine-learning powered technique. We have identified over 10K scam tokens listed on Uniswap, which suggests that roughly 50% of the tokens listed on Uniswap are scam tokens. All the scam tokens and liquidity pools are created specialized for the "rug pull" scams, and some scam tokens have embedded tricks and backdoors in the smart contracts. We further observe that thousands of collusion addresses help carry out the scams in league with the scam token/pool creators. The scammers have gained a profit of at least $16 million from 39,762 potential victims. Our observations in this paper suggest the urgency to identify and stop scams in the decentralized finance ecosystem, and our approach can act as a whistleblower that identifies scam tokens at their early stages.

Strategic Diversification for Asynchronous Asset Trading: Insights from Generalized Coherence Analysis of Cryptocurrency Price Movements

Non-linear interactions between cryptocurrency price movements can elicit cross-frequency coupling (CFC) wherein one set of frequencies in the 1st timeseries is coupled to another set of frequencies in the 2nd timeseries. To investigate this, we use a generalized coherence approach to detect and quantify both linear (i.e., iso-frequency coupling, IFC) and non-linear coherence (CFC) and the associated phase relationships between the intra-day price changes of various pairs of cryptocurrencies for the year 2020. Using this information, we further assess the risk reduction associated with diversification of portfolios between each pair of a small market capital and a large market capital cryptocurrency, for both synchronous and asynchronous trading conditions. While mean pairwise IFC values were lower for smaller cryptocurrencies, pairwise CFC values were more heterogeneous and had no correlation with the market capital size. Diversification of portfolios resulted in reduced risk for synchronously-traded pairs of those cryptocurrencies which had low IFC. For asynchronous trading conditions, if the larger market capital cryptocurrency was traded at a higher frequency, diversification almost always reduced risk. Thus, the novel approach used in this study reveals important insights into the complex dynamics that govern the price trends of cryptocurrencies.

Credit Guidance for a Desired Economy: An Original Institutional Economics Critique of Financialization

Financialization describes the turn to speculative asset trading that has become increasingly central to economic life in recent decades. Critics argue this has occurred at the expense of the “real economy,” referring to production and trade. Critics further argue that finance’s normal role is to serve the needs of the productive sector. Financialization, which diverts capital from production to speculation, is viewed as a deviant form of capitalist development. Drawing on original institutionalist insights, this article argues that such a juxtaposition of the so-called real economy versus deviant financialization is misleading. Financial speculation is a logical outcome of capitalism’s actual real economy—capital accumulation. Firms within a capitalist economy must continually engage profit-seeking practices, which in turn produces psychological habituation in agents. The latter makes profit-seeking, not production-seeking, the psychological foundation of capitalist agency, such that all legal profit-making activity is an instance of capitalism’s real economy. Prioritizing productive investment is a desired economy, an outcome that requires regulatory intervention. This paper proposes that credit guidance is a regulatory solution to financialization, one that can increase economic welfare. JEL Classification: O38, D91, H11, P10

Weighted average price management of sales under the given minimum volume of assets obligatory for realization

In this paper, we consider the construction of a sales management strategy for a highly liquid asset trading at the market. The proposed strategy goal is to maximize the weighted average price of sales. It is assumed that the market price follows a geometric Brownian motion process in which drift and volatility coefficients are random functions of time. The important feature of the given management is that the volumes of assets in the succession of buy and sell executed bargains are calculated exclusively on the basis of the observed market prices rather than on the model coefficient values. In contrast to the management proposed earlier in this study, obligatory realization of some minimum volume of assets on the given time period is demanded. Examples of real-world markets trade demonstrating the imposed constraints effect on the weighted average price values obtained within the constructed management are given.

Sustainable development of the business debt trading market in Vietnam: A view of Vietnam Debt and Asset Trading Corporation

Along with production and business activities, debt is also a major concern of Vietnamese businesses. Debt can help businesses do business better, but it can also make businesses face difficulties in cash flow and liquidity. Meanwhile, the debt trading market in Vietnam is still primitive and underdeveloped. The article analyses the debt situation of businesses and the debt trading market in Vietnam from the perspective of business activities of Vietnam Debt and Asset Trading Coporation to gain an overview of the debt trading market and business debt trading activities to develop the business debt trading market in Vietnam.

Application of Blockchain Technology in Commercial Banks

Blockchain technology is widely used in finance, digital asset trading and other fields because of its characteristics of decentralization, unforgeability and sharing. Blockchain has become one of the hot topics in fintech research, which affects the development of traditional financial formats. It is considered as the cornerstone of digital economy. This paper systematically analyzes the characteristics of blockchain technology, the impact of blockchain technology on the operation and management of traditional commercial banks, and prospects the application of blockchain technology in commercial banks.

Investasi Cryptocurrency Berdasarkan Peraturan Bappebti No. 5 Tahun 2019

Current technological developments have digital money or cryptocurrency which is currently being used as an investment by the world community. Seeing this, the government has now issued CoFTRA Regulation Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Asset Market in the Futures Exchange to ensure legal protection for investors and legal certainty in the event of a dispute. This study aims to analyze protection The law against Cryptocurrency Investors is reviewed based on Bappebti Regulation Number 5 of 2019 and analyzes the legal efforts made in the event of a dispute in cryptocurrency investment. The research method in this study uses normative legal research methods with a statutory approach and a conceptual approach. The results of this study show that the Indonesian Government has accommodated the interests of crypto asset trading as well as a guideline and clarity for the public regarding the government's recognition of the presence of bitcoin and virtual currancy, namely through Bappebti Number 5 of 2019 and dispute disputes that occur between cryptocurrency investors and cryptocurrency marketplaces by way of non-litigation and arbitration through the Commodity Futures Trading Arbitration Board (BAKTI). Perkembangan teknologi saat ini telah terdapat uang digital atau cryptocurrency yang saat ini dijadikan sebagai investasi oleh masyrakat dunia. Melihat hal tersebut kini pemerintah telah mengeluarkan Peraturan Bappebti Nomor 5 Tahun 2019 Tentang tentang Ketentuan Tekhnis Penyelenggaraan Pasar Fisik Asset Kripto (Crypto Asset) di Bursa Berjangka untuk memastikan adanya perlindungan hukum bagi para investor dan kepastian hukum apabila terdapat sengketa. Studi ini bertujuan untuk menganalisa perlindungan Hukum terhadap Para Investor Cryptocurrency dikaji berdasarkan Peraturan Bappebti Nomor 5 Tahun 2019 serta menganalisa upaya Hukum yang dilakukan apabila terjadi sengketa dalam investasi cryptocurrency. Metode penelitian dalam studi ini menggunakan metode penelitian hukum normatif dengan pendekatan perundang-undangan dan pendekatan konseptual. Hasil studi ini menunjukkan bahwa Pemerintah Indonesia telah mengakomodir kepentingan perdagangan kripto aset serta sebagai suatu pedoman dan kejelasan bagi masyarakat terkait pengakuan pemerintah terhadap kehadiran bitcoin dan virtual currancy yaitu melalui Bappebti Nomor 5 Tahun 2019 dan perselisihan sengketa yang terjadi antara investor cryptocurrency dengan marketplace cryptocurrency dapat diselesaikan dengan jalan non-litigasi dan abitrase melalui Badan Arbitrase Perdagangan Berjangka Komoditi (BAKTI).