1 min
By Bary Rahma
Updated by Bary Rahma
In Brief
- Indonesia’s OJK to enforce strict crypto regulation through a regulatory sandbox program by 2025.
- The move aims to protect consumers and prevent fraudulent investments in the crypto sector.
- New crypto products and services must undergo evaluation in the sandbox to be officially recognized.
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Indonesia’s Financial Services Authority (OJK) has announced that it will enforce stringent regulations on crypto operations starting in 2025.
The new regulations mandate that all financial service institutions undergo a regulatory sandbox program. This initiative aims to assess the feasibility and reliability of these innovations in a controlled environment.
2025 Marks Indonesia’s Move to Tight Crypto Regulation
Hasan Fawzi, the Executive Head of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets Supervision, made the announcement. He emphasized that the move primarily aims to protect consumers and prevent fraudulent investments.
“This embodies our spirit at the OJK, especially in consumer protection and education. We expect all our regulatory mechanisms to directly impact the prevention of fraudulent investments,” Fawzi said.
Under the forthcoming crypto regulations, companies introducing new products or business models must enter the sandbox. Failure to comply will result in their operations being classified as unauthorized or illegal.
“In essence, if an IT-based financial services provider is not registered as a participant in our sandbox, or later, after we have established certain clusters, whether licensed by the OJK or not, it will be deemed equivalent to other unauthorized entities,” Fawzi clarified.
The regulatory sandbox is a platform for digital financial asset practitioners to familiarize themselves with OJK’s regulations and supervision. This transition marks a significant shift in crypto asset supervision from the Commodity Futures Trading Regulatory Agency (Bappebti) under the Ministry of Trade to the OJK, in line with the Law on the Development and Strengthening of the Financial Sector (UU P2SK).
This initiative by the OJK reflects Indonesia’s commitment to ensuring that the innovation and development of technology in the financial sector are conducted responsibly and with proper risk management.
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