The Indonesian government is yet to finalize the transfer of crypto asset oversight from the Commodity Futures Trading Agency (Bappebti) under the Trade Ministry to the Financial Services Authority (OJK), as required by the Financial Sector Law, as reported by the Jakarta Globe on Thursday, January 2, 2025.
The transition of regulatory oversight from Bappebti to the OJK, originally set for January 12, 2025, has been postponed due to the lack of supporting government regulation. At the stock market opening in Jakarta, OJK Chairman Mahendra Siregar announced that a draft regulation was being prepared and that discussions with the Trade Ministry were ongoing, emphasizing the necessity of this regulation for a smooth transition.
Digital economy expert Nailul Huda criticized the delay, attributing it to the Trade Ministry’s reluctance to cede control. He emphasized the critical nature of a seamless transition for Indonesia’s growing crypto sector, noting that while OJK’s oversight could introduce stricter regulations, it may ultimately benefit investors.
Industry leaders, including brokers and crypto exchanges, are urging swift action for regulatory clarity. Ibrahim Assuaibi from Laba Forexindo Berjangka stated that the transition would enhance oversight and facilitate direct transactions under OJK and Bank Indonesia’s supervision. Bittime’s CMO and Triv CEO also supported the OJK’s proactive stance and the continuity of regulatory frameworks.
Both OJK and Bappebti have expressed readiness for the transition. OJK Commissioner Hasan Fawzi mentioned thorough studies on global crypto regulations and workforce preparations. At the same time, Bappebti Head Kasan assured that current rules will remain effective until the new regulation is implemented.
This development came as Indonesia’s cryptocurrency market saw explosive growth in 2024, with transaction volumes reaching $30 billion by October, representing a 352% increase from $6.5 billion the previous year. Reports indicate that this year’s volume has already exceeded the totals for 2022 and 2023. The number of crypto traders in Indonesia rose to 21 million, with 716,000 actively trading on local exchanges.
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