Russian Journal of Agricultural and Socio-Economic Sciences (Feb 2022)
LEGAL PROTECTION ON BITCOIN PRICE MANIPULATION
Abstract
The latest technological advancement resulted in the creation of innovations, such as cryptocurrency, namely virtual money that functions as a tool of exchange as well as a form of investment. A popular form of cryptocurrency is bitcoin. Bitcoin prices often fluctuate, which opens the risk for price manipulation that may bring loss to others. This paper aims to analyze the legal protection of bitcoin price manipulation. This descriptive research uses the doctrinal or the normative approach. The data of this research is obtained from secondary data, i.e., literary legal materials. Results show that the price manipulation in bitcoins happened due to the ‘pump and dump’ activity. ‘Pump and dump’ is the most dangerous crime in the cryptocurrency market, as the crypto assets are bought in large amounts (‘pump’), thus causing the price to steeply increase. Then, it is sold in large amounts (‘dump’) so the price falls drastically and it returns to the point before the pump. This is categorized as a cybercrime. All the parties that experience loss from this crime have the right to obtain legal protection and to undergo legal efforts. Then, the legal effort includes the litigation method through the court or the non-litigation method by resolving disputes outside of the court.
