Cryptaxforensic, When Cryptocurrency, Taxation, and Digital Forensic Collide: An Overview of Indonesian Cryptocurrency Market

TL;DR

This paper explores the challenges and issues at the intersection of cryptocurrency, taxation, and digital forensics in Indonesia, highlighting how blockchain technology complicates legal and forensic processes.

Contribution

It provides an overview of the Indonesian cryptocurrency market and discusses the impact of blockchain on taxation and digital forensic investigations.

Findings

Blockchain increases difficulty in taxation enforcement.

Cryptocurrency transactions pose challenges for digital forensic analysis.

The paper highlights the need for new forensic and legal frameworks.

Abstract

Blockchain has emerged into one of the most promising technologies for the future. Its most successful implementation in the form of cryptocurrency has shifted many existing paradigms where financial instruments were limited by locations or jurisdictions. While blockchain is touted to offer many significant and promising features on the other hand it also increases the difficulty level in the taxation area as well as digital forensics. We investigated the issues and explores the real-world situation and how taxation and digital forensics can cope with these technology challenges.