TABLE OF CONTENTS

TITLE PAGE ......................................................................................................... I

APPROVAL PAGE ............................................................................................. II

ACKNOWLEDGEMENT PAGE ...................................................................... III

STATEMENT OF AUTHENTICITY ............................................................... IV

DEDICATION PAGE...........................................................................................V

TABLE OF CONTENTS................................................................................. VIII

ABSTRACT ......................................................................................................... XI

INTISARI .......................................................................................................... XII

CHAPTER I: INTRODUCTION ........................................................................ 1

A. Underlying Background ................................................................................. 1

B. Problem Statement ......................................................................................... 4

C. Purposes.......................................................................................................... 5

1. Objective Purpose ....................................................................................... 5

2. Subjective Purpose ...................................................................................... 6

D. Originality of Research .................................................................................. 6

E. Benefit ............................................................................................................ 8

1. Academic Benefit ........................................................................................ 8

2. Practical Benefit .......................................................................................... 8

CHAPTER II: LITERATURE REVIEW........................................................... 9

VIII
 A. Transaction ..................................................................................................... 9

B. Currency ....................................................................................................... 10

C. Virtual Currency ........................................................................................... 14

D. Bitcoin .......................................................................................................... 16

E. Indonesian Point of View of Electronic Currency and as a Method of

Transaction ........................................................................................................ 18

CHAPTER III: RESEARCH METHOD .......................................................... 21

A. Type of Research .......................................................................................... 21

B. Type of Data ................................................................................................. 23

C. Data Collection Method ............................................................................... 24

D. Data Analysis ............................................................................................... 26

CHAPTER IV: RESEARCH FINDINGS AND ANALYSIS .......................... 29

A. The Legality of Bitcoin as a Currency and Method of Transaction in

Indonesia ........................................................................................................... 29

1. Importance of Legality Principle in a State .............................................. 29

2. The status of Bitcoin by Bank Indonesia.................................................. 30

3. Bitcoin under the Indonesia legal system .................................................. 32

4. The Bitcoin Industry in Indonesia ............................................................. 37

5. The Missing Link of Regulatory and Supervisory Body .......................... 40

a. Anti-Money Laundering Law as a Temporary Guarantor..................... 43

B. The Legal Status of Bitcoin in Other States as a Currency and Method of

Transaction ........................................................................................................ 47

1. Comparative Study: A Theater of Observation of 3 States ..................... 47

IX
 2. The United States of America.................................................................. 50

a. The Growth of Bitcoin in the United States of America ....................... 50

b. Bitcoin in Form of Legislation Case-by-Case Analysis ........................ 51

1) Federal Level ...................................................................................... 51

2) Bitcoin and Its Criminal Activities in State or District Level............. 55

c. The Institution Made Regulation ........................................................... 61

d. Bitcoin as Money Service Business ..................................................... 63

e. Bitcoin and State Regulatory ................................................................. 65

f. Bitcoin and Other Usages....................................................................... 68

3. China, How and Why They Reject Bitcoin ............................................. 69

4. Germany .................................................................................................. 73

5. Contrasting Implications of Bitcoin Legality Across States .................... 76

CHAPTER V: Closure........................................................................................ 78

A. Conclusion.................................................................................................... 78

B. Recommendation .......................................................................................... 79

BIBLIOGRAPHY ............................................................................................... 81