Indonesian President Warns of Massive Money Laundering Through Crypto and NFTs, Urges Swift Action

President Joko Widodo (Jokowi) of Indonesia expressed serious concerns over money laundering activities using cryptocurrencies and non-fungible tokens (NFTs) during a speech at the 22nd Anniversary of the National Movement for Anti-Money Laundering and Terrorism Financing Prevention held at the State Palace in Jakarta last Wednesday.

Jokowi’s Concerns and Statements

Approximately $8.6 billion (139 trillion IDR) worth of money laundering transactions were indicatively carried out through crypto assets worldwide in 2021 (Chainalysis 2022 Crypto Crime Report)
“139 trillion IDR globally is not just large - it is extremely large”
Urged swift action to stay ahead of money laundering schemes
Highlighted need for monitoring potential tools including crypto, NFTs, virtual assets, marketplace activities, electronic money, and AI-driven transactions

OJK to Lead Crypto Regulation and Compliance

Mahendra Siregar, chairman of the Board of Commissioners of the Financial Services Authority (OJK), assured action once jurisdiction is transitioned to the OJK
Oversight of crypto assets to be taken by the OJK starting in January 2025
Authority to handle potential money laundering problems and possible collaborations with other financial institutions

Indonesia’s Political Stance on Crypto

During the February 2024 elections:

Newly elected President Prabowo Subianto and Vice President Gibran Rakabuming Raka showed significant interest in crypto
Needs for blockchain and crypto expertise
Improve tax compliance supervision for crypto assets

Schedule and Future Plans

Official inauguration on October 20, 2024
Continuous efforts to prevent money laundering and stay updated on crypto regulations

Disclaimer

This article is for informational purposes only. It should not be regarded as financial or legal advice. CoinDesk is an independent media outlet covering the cryptocurrency industry with a set of editorial policies. Since November 2023, CoinDesk is an independent subsidiary under the Bullish Group, which owns Bullish, a regulated digital assets exchange, and holds significant stakes in various blockchain and crypto-related businesses, as well as substantial crypto holdings, including Bitcoin.