Indonesian financial regulator issues new crypto regulations to strengthen industry

• The regulation does not go into detail but paves the way for managing crypto’s advancements in the financial field.

• Earlier this month, the OJK collaborated with Malaysia, Singapore and Dubai to develop a framework for crypto policy.

Indonesia’s financial services regulator, the Financial Services Authority (OJK), has issued new regulations implementing technological innovation in the financial sector, which will apply to crypto from January 2025.

This rule is a practical guide for banks, insurance companies and others in the financial sector on how to innovate with new technologies when exploring new technological possibilities. The regulation explains how innovations in the financial sector impact different financial products and services and how businesses operate digitally.

It also includes guidelines on protecting customers, setting up test environments (sandboxes) for new technologies, and reporting the results of these tests. Importantly, it covers activities involving digital financial assets, including cryptocurrencies.

This regulation does not go into detail but paves the way for managing crypto advancements in the financial field. The release of this crypto regulation highlights the proactive steps taken by the OJK to prepare to assume crypto oversight by January 2025.

OJK is working closely with the current crypto regulator, Bappebti and Bank Indonesia, creating a transition team to manage the change in the supervision of digital financial assets.

Earlier this month, J.O.K. partnered with financial authorities in Malaysia, Singapore and Dubai to develop a comprehensive crypto policy. These international collaborations, including drafting MoUs with Malaysia’s Bank Negara, the Monetary Authority of Singapore and the Dubai Virtual Assets Regulatory Authority, aim to establish a solid framework for crypto policy.

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