[NEWS] Indonesia's financial regulator to implement cryptocurrency regulations in January 2025

Indonesia's financial services regulator, OJK (Financial Services Authority), announced new regulations for crypto assets on the 13th. They are scheduled to come into effect in January 2025.

The new regulations, with a view to strengthening the financial sector in Indonesia, detail how new technologies can be utilized as crypto assets begin to emerge. This applies to banks, insurance companies, and many other financial sector players.

The regulations consider how the introduction of new innovations in the financial sector will affect financial services and their products. This will allow for scrutiny of financial institutions' digital operations.

The latest guidelines also list concerns for customers. For example, they require customer protection, the implementation of pilot tests of technological innovations, and reporting of test results.

The details of these have not yet been finalized. However, it has been mentioned that the implementation of these regulations will provide a supervisory basis to support financial innovation through crypto assets in Indonesia.

A team consisting of experts from not only OJK but also Bank Indonesia and the current cryptocurrency regulator, Bappebti (Commodity Futures Trading Regulatory Agency), was also established. The team will work to ensure a smooth transition of supervision of digital financial assets.

Collaboration with Malaysia, Dubai, etc.

Indonesia is actively working on organizing guidelines to regulate crypto assets and is also strengthening cooperation with other countries.

Earlier this month, OJK agreed to cooperate with financial regulators such as Malaysia, Singapore, and Dubai to prepare a comprehensive cryptocurrency strategy. It aims to lay the groundwork for cryptocurrency policy and cooperate internationally with related countries.

The partnership includes signing a memorandum of understanding with the Monetary Authority of Singapore (MAS). It has also drafted a memorandum of understanding with Dubai's Cryptocurrency Regulatory Authority, and Malaysia's major bank, Bank Negara, is also involved.

Indonesia believes that a digital revolution is necessary to grow its GDP to $2.8 trillion by 2040. Finance Minister Sri Mulyani has called for a policy to be finalized to regulate crypto assets in 2023. In July 2023, he also told the G20, "We need a global standard to regulate and supervise crypto assets, applying the same principles of behavior, risk and regulation." Indonesian regulators are also considering changes to the double taxation of crypto assets.

Reference: Announcement
Image: Shutterstock

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