Indonesia’s Financial Regulator Issues New Regulations on Crypto

The Indonesian Financial Services Authority (OJK) has issued new regulations aimed at implementing technological innovation in the financial sector, with a focus on digital financial assets including cryptocurrency.

New Regulations Take Effect January 2025

The guidelines are set to take effect starting January 2025 and will apply to banks, insurance companies, and other financial industry players. The regulation provides a framework for innovating with new technologies in finance, covering topics such as:

• Impact of Innovations on Different Financial Products and Services: How innovations will affect various financial products and services.
• Company Operations: How companies will operate in the digital age.
• Customer Protection: Measures to protect customers from potential risks and fraud.
• Testing Environments: Protocols for testing new technologies and systems.
• Reporting Outcomes: Requirements for reporting on the outcomes of technological innovations.

Setting the Stage for Crypto Oversight

The regulation does not delve into specifics, but it sets the stage for managing crypto advancements in finance. This move highlights OJK’s proactive efforts to prepare for taking over crypto oversight from current regulator Bappebti and Bank Indonesia by January 2025.

Collaboration with International Partners

As part of this transition, OJK is working closely with its counterparts to establish a seamless handover. Earlier this month, the OJK collaborated with financial authorities from Malaysia, Singapore, and Dubai to develop a comprehensive framework for crypto policy.

Key Outcomes

• Drafting Memorandums of Understanding: The international collaborations aim to establish a solid foundation for regulating digital financial assets by drafting Memorandums of Understanding (MOUs) with key players such as:
  • Bank Negara
  • Monetary Authority
  • Virtual Asset Regulatory Authority