<![CDATA[To maintain Indonesia's financial integration and monetary stability, foreign exchange operations are crucial. However, issues such as dispersed authority and slow response to advances in financial technology continue to hamper the legal structure governing them. The purpose of this study is to examine Indonesia's foreign exchange legal framework, identify normative gaps, and develop recommendations for regulatory harmonization. This study employs a normative-juridical approach within the literature, employing legal interpretation analysis and doctrinal synthesis to process secondary data from academic literature, laws and regulations, and reports from supervisory authorities. The study concludes that, despite the existence of a comprehensive regulatory framework, regulatory gaps in the supervision of digital-based foreign exchange services, disproportionate administrative sanctions, overlapping authority between Bank Indonesia and the Financial Services Authority (OJK), and inadequate consumer protection remain. Business compliance capacity and fragmented reporting systems also complicate the implementation of money laundering and terrorism financing prevention standards. The study concludes that a paradigm shift from entity-based to activity-based regulation is necessary for the foreign exchange legal system. Developing a single regulatory framework, strengthening consumer dispute resolution procedures and exchange rate transparency, implementing risk-based supervision, and coordinating currency regulations with the emergence of digital financial products are among the key recommendations. A secure, transparent, and flexible currency exchange ecosystem that adapts to the demands of the digital economy is expected to result from this regulatory harmonization.]]>
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