The Financial Services Authority (OJK), Indonesia’s financial regulator, has introduced new regulations to embrace technological innovation within the financial sector, with a specific focus on cryptocurrencies, effective from January 2025.
These regulations serve as a roadmap for banks, insurance companies, and other entities within the financial industry, offering guidance on leveraging new technologies to explore innovative possibilities.
The guidelines outline how advancements in financial technology impact various financial products and services, as well as the digital operations of companies.
Additionally, they include provisions for safeguarding customers, establishing testing environments (known as sandboxes) for new technologies, and reporting the results of these tests. Crucially, the regulations encompass activities involving digital financial assets, such as cryptocurrencies.
While not delving into specific details, these regulations lay the groundwork for managing advancements in cryptocurrency within the financial realm. Their issuance underscores OJK’s proactive approach in preparing for the oversight of cryptocurrencies by January 2025.
OJK is collaborating closely with existing cryptocurrency regulators, including Bappebti and Bank Indonesia, to establish a transition team tasked with overseeing the transition in digital financial asset supervision.
Earlier this month, OJK initiated partnerships with financial authorities from Malaysia, Singapore, and Dubai to develop a comprehensive cryptocurrency policy.
These international collaborations involve drafting Memorandums of Understanding with Malaysia’s Bank Negara, Singapore’s Monetary Authority, and Dubai’s Virtual Asset Regulatory Authority, with the aim of establishing a robust framework for cryptocurrency policy.
