Indonesia to Strengthen Crypto Regulations in 2025
Indonesia’s Financial Services Authority (OJK) has announced plans to introduce stricter regulations on crypto operations starting in 2025. The move is aimed at enhancing consumer protection and preventing fraudulent investments within the digital asset space.
Executive Head Emphasizes Protection and Prevention
- The Executive Head of Financial Sector Technology Innovation, Hasan Fawzi, highlighted the importance of protecting consumers and preventing fraudulent activities in the crypto market.
- Fawzi stated that the regulatory changes are in line with OJK’s commitment to safeguarding consumer interests and educating the public about the risks associated with crypto investments.
Regulatory Sandbox for Compliance
- Under the upcoming regulations, all financial service institutions that introduce new products or business models related to digital assets must participate in a regulatory sandbox program.
- Failure to comply with the sandbox requirements will lead to the classification of operations as unauthorized or illegal, according to OJK guidelines.
Transition to OJK Supervision
- The regulatory sandbox serves as a platform for digital asset practitioners to familiarize themselves with OJK’s regulations and supervision protocols.
- This transition marks a significant shift in crypto asset oversight from the Commodity Futures Trading Regulatory Agency (Bappebti) to the OJK, aligning with the national Law on the Development and Strengthening of the Financial Sector (UU P2SK).
Indonesia’s Commitment to Responsible Innovation
The OJK’s initiative underscores Indonesia’s dedication to promoting responsible innovation and technology development in the financial sector, while also emphasizing proper risk management practices to safeguard consumer interests.
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