Indonesia to centralize crypto regulation under financial watchdog by January 2025

Indonesia is preparing for a major overhaul of its crypto regulatory framework, with the Financial Services Authority (OJK) set to assume oversight from Bappebti, which currently operates under the Ministry of Trade, according to a report by the Jakarta Globe.

The transition, slated for completion by January 12, 2025, highlights the nation’s commitment to regulating its rapidly growing crypto market more effectively.

However, uncertainties linger as delays could emerge due to pending government regulations, keeping the industry in suspense.

Experts believe this shift could legitimize crypto trading in Indonesia and attract increased interest from institutional investors.

The move aims to align crypto trading policies with broader financial sector standards, fostering greater transparency and compliance.

Meanwhile, market participants are closely watching government actions for clarity on the upcoming regulatory roadmap.

Indonesia’s crypto oversight

The planned transition of crypto oversight to the OJK marks a critical evolution in Indonesia’s regulatory landscape.

The move was first proposed in late 2022 by Finance Minister Sri Mulyani, signaling the government’s intent to align crypto governance with broader financial sector policies.

While the bill required to formalize this transition is yet to be finalized, both the OJK and Bappebti have started preparing for the handover.

The OJK, known for its extensive role in financial regulation, is leveraging insights from other countries’ crypto frameworks.

Commissioner Hasan Fawzi noted that the authority is training its regulators to ensure they are equipped to handle the complexities of the digital asset sector.

In the interim, Bappebti Head Kasan confirmed that existing rules governing crypto trading and operations will remain in force until new regulations are introduced.

For the industry, this transition could offer long-term benefits.

By centralizing oversight under the OJK, which collaborates closely with Bank Indonesia, the regulatory process could become more streamlined, potentially fostering greater confidence among investors and stakeholders.

Project Garuda and other crypto news in Indonesia

Indonesia’s commitment to advancing its digital financial ecosystem is further exemplified by Project Garuda, a central bank digital currency (CBDC) initiative led by Bank Indonesia.

Completed in December, the project’s Proof of Concept lays the groundwork for Indonesia’s potential entry into the CBDC space.

The CBDC development ties into the broader regulatory reforms, as the OJK’s increased involvement in the crypto sector, could harmonize crypto trading and digital finance policies.

For local players, this transition presents an opportunity to operate within a more structured and legitimate framework, bolstering Indonesia’s position as a key player in Southeast Asia’s digital economy.

As the deadline for the transition approaches, the spotlight remains on whether the required legislative and regulatory frameworks will be finalized on time.

Until then, the industry waits for a clearer roadmap to navigate the evolving landscape of crypto regulation in Indonesia.

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