Indonesia’s Finance Regulator Issues New Crypto Regulation to Strengthen Industry

• The regulation doesn’t dive into the details but sets the stage for managing crypto advancements in finance.
• 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 to implement technological innovation in the financial sector, which will apply to crypto starting January 2025.

This rule is a how-to guide for banks, insurance companies, and other financial industry folks on innovating with new technologies when exploring new tech possibilities. The regulation talks about how innovations in the finance sector impact different financial products and services and how companies operate digitally.

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

This regulation doesn’t dive into the details but sets the stage for managing crypto advancements in finance. The release of this crypto regulation highlights OJK’s proactive steps to prepare for assuming 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 shift in digital financial asset supervision.

Earlier this month, OJK has been teaming up with financial authorities from Malaysia, Singapore, and Dubai to build a comprehensive crypto policy. These international collaborations, including drafting Memorandums of Understanding with Malaysia’s Bank Negara, Singapore’s Monetary Authority, and Dubai’s Virtual Asset Regulatory Authority, aim to establish a solid framework for crypto policy.