Jakarta. Indonesia’s crypto industry has entered a new regulatory chapter as oversight transitions from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (OJK). The shift, formalized under Government Regulation No. 49 of 2024, takes effect on Jan. 10, 2025.

The regulation mandates OJK to oversee digital financial assets, including cryptocurrencies, while Bank Indonesia (BI) assumes responsibility for money market and foreign exchange-based financial derivatives. 

With the transition, all crypto-related activities—from trading to transaction settlements—must now comply with OJK regulations. Digital asset infrastructure is also required to adhere to newly established standards.

Lawmakers have broadly welcomed the move. Ahmad Najib Qodratullah, a member of Indonesia’s House of Representatives Commission XI, described the transfer of authority as a positive step toward regulatory efficiency and financial stability. However, he emphasized the need for policy harmonization across institutions.

“Clear coordination mechanisms between OJK, BI, and Bappebti are essential. Unified regulatory standards are key to ensuring a smooth transition,” Najib said on Friday.

Najib also pointed to potential challenges, such as increased operational costs for fintech startups, which could stifle innovation. He urged regulators to prioritize consumer protection and transaction transparency to support sustainable growth in the sector.

OJK, now tasked with overseeing the crypto industry, has rolled out several strategic measures. Hasan Fawzi, OJK’s Chief Executive for Financial Technology, Digital Financial Assets, and Crypto Asset Supervision, outlined a phased approach involving close coordination with Bappebti and industry players.

“All preparations are being conducted in compliance with prevailing laws to ensure a seamless transition without disrupting industry operations,” Hasan said during a recent OJK board meeting.

As part of its regulatory framework, OJK has introduced new guidelines under Regulation No. 27 of 2024 and Circular No. 20 of 2024, providing a legal foundation for crypto trading. Additionally, OJK plans to deploy an advanced real-time monitoring system for digital asset activities.

The regulator is also issuing transition guides for businesses and conducting intensive training for its staff to enhance supervisory capabilities. To combat potential misuse of crypto assets, OJK is collaborating with the Attorney General’s Office, the Financial Transaction Reports and Analysis Center (PPATK), and law enforcement agencies.

Finally, OJK has evaluated crypto businesses to ensure compliance with “know your entity” (KYE) principles, a measure aimed at strengthening transparency and accountability within the industry.

According to Bappebti, the number of crypto investors in Indonesia surpassed 17 million in 2023, compared to 9 million stock market investors. The trade value of crypto assets reached Rp 300 trillion ($19.6 billion) in 2023, reflecting the significant interest in digital currencies.