The Effectiveness of Mutual Legal Assistance Mechanisms in Tracking and Recovering Corrupt Assets Transformed into Crypto Assets by White Collar Criminals

The development of digital technology has created new challenges in eradicating corruption, particularly when criminal assets are transformed into cross-border, difficult-to-trace crypto assets. In this context, the Mutual Legal Assistance (MLA) mechanism has become a crucial instrument for countries, including Indonesia, to track, confiscate, and return crypto assets resulting from corruption committed by white-collar criminals. This study examines the effectiveness of MLA using a statutory and conceptual approach, specifically referring to Law Number 1 of 2006 concerning Mutual Assistance in Criminal Matters, Law Number 31 of 1999 in conjunction with Law Number 20 of 2001 concerning the Eradication of Criminal Acts of Corruption, and international provisions such as the United Nations Convention Against Corruption (UNCAC). The analysis reveals that the implementation of MLA in crypto asset cases continues to face various obstacles, including limited regulations that do not yet adequately address financial technology-based crimes, bureaucratic delays between countries, and the limited technical capacity of law enforcement officials in digital forensics and crypto asset tracing. Therefore, strengthening national regulations is necessary through revising the MLA Law to make it relevant to crypto developments, increasing the capacity of law enforcement agencies to master digital investigative technology, and expanding international cooperation through both multilateral instruments such as the UNCAC and more operational bilateral agreements. Optimizing the MLA mechanism is expected to enhance the effectiveness of tracking and recovering corrupt cryptocurrency assets while strengthening the integrity of the legal system in addressing the challenges posed by technology-based cross-border crime.