Indonesia’s Financial Services Authority (OJK) will regulate the crypto industry starting in January 2025. Crypto firms must undergo evaluation in a regulatory sandbox before obtaining licenses to operate under the regulations.
Hasan Fawzi, the OJK’s head of supervision for financial technology and crypto, emphasized the importance of consumer protection. “We expect our regulatory mechanisms to impact the prevention of fraudulent investments directly,” he said during a media briefing on Tuesday.
The regulatory sandbox will serve as a testing and innovation development space to evaluate products and ensure they’re safe and reliable. It provides an isolated environment to conduct trial runs, enhancing security and responsible management in the financial sector.
Firms offering services in Indonesia without undergoing evaluation in the sandbox will be considered to be operating illegally.
The move aligns with the OJK’s spirit of consumer protection and education. The regulator plans to classify crypto assets as a financial tool to improve oversight and facilitate investment fraud.
Hasan Fawzi restated his earlier position this month. This statement also states that the regulatory sandbox allows crypto businesses to adapt to the regulations and supervision enforced by the OJK.
The transition of regulatory authority from Bappebti to the OJK highlights Indonesia’s efforts to establish a more robust and comprehensive regulatory framework for the crypto industry, prioritizing consumer protection and fostering a safe and reliable environment for crypto-related activities.
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