Starting in 2025, Indonesia is set to introduce strict regulations for its cryptocurrency industry. The Financial Services Authority (OJK) has taken a significant step by requiring all financial service institutions to participate in a regulatory sandbox program. This move aims to test and ensure the safety and effectiveness of new financial innovations in a secure setting.
Hasan Fawzi, the leading authority on Financial Sector Technology Innovation, including Digital Financial Assets and Crypto Assets Supervision at OJK, announced these changes. Fawzi’s team is focusing on safeguarding consumers and curbing fraudulent financial schemes. The core of these regulations is to enhance consumer protection and educate the market on secure investment practices.
The Regulatory Sandbox Program
The upcoming regulations introduce a mandatory sandbox program for companies looking to launch new products or business models in the crypto space. Any firm that bypasses this requirement risks having its operations labeled as unauthorized or illegal.
Fawzi explains that any IT-based financial service provider not registered in the sandbox, or not categorized into specific clusters post-evaluation, will be considered unauthorized. This statement underlines the importance of compliance with the OJK’s new framework.
This sandbox serves as a preparatory ground for digital financial asset companies to align with OJK’s stringent regulations and oversight procedures. Notably, this shift in regulatory responsibility from the Commodity Futures Trading Regulatory Agency (Bappebti) to the OJK aligns with the Law on the Development and Strengthening of the Financial Sector (UU P2SK). It marks a pivotal change in the supervision of crypto assets in Indonesia, signifying the government’s intent to bring more stability and security to the crypto market.