The transition of oversight for crypto assets in Indonesia from the Commodity Futures Trading Agency to the Financial Services Authority is currently facing delays due to a lack of supporting government regulation.
As reported by Jakarta Globe, the transfer of supervisory authority for crypto assets from the previous agency, Bappebti under the Ministry of Trade, to the Financial Services Authority was initially scheduled to take place by January 12, 2025. However, the transfer may experience further delays due to the absence of necessary government regulations.
Chairman of the Indonesian Financial Services Authority, Mahendra Siregar, has reassured the public that discussions are ongoing and preparations are being made for the transition.
“We have been working closely with the Trade Ministry to ensure a smooth transition. Once the regulation is put into effect, it will serve as the legal basis for the transfer,” stated Siregar.
The proposal to transfer the oversight of crypto assets from Bappebti to OJK was initially introduced by Finance Minister Sri Mulyani in late 2022. The official bill required to formalize the transition between the two government bodies necessitates agreement from both the legislative and executive branches of the Indonesian government. At present, the official government bill for the scheduled January 12 transition has yet to be released.
Both OJK and Bappebti have confirmed their readiness for the transition. OJK Commissioner Hasan Fawzi mentioned that the agency has been studying how other countries implement crypto regulations and training its regulators accordingly. Meanwhile, Bappebti Head Kasan stated that the current crypto regulations in the country will remain in effect until new regulations are established by OJK.
Various local industry players, including brokers and exchange firms, are eagerly anticipating the transition as they view it as a positive step towards regulating the crypto sector and legitimizing crypto trading for investors. OJK’s collaboration with the central bank of Indonesia in overseeing the financial sectors could potentially lead to more streamlined crypto regulations in the future.
In December, Bank Indonesia successfully completed the Proof of Concept for Project Garuda, the pilot project for Indonesia’s own central bank Digital Currency.