OJK Will Form A Transition Team For Crypto Supervision Switch

The Financial Services Authority (OJK) is coordinating with Bank Indonesia (BI) and the Commodity Futures Trading Supervisory Agency (CoFTRA) regarding the transfer of authority to regulate and supervise digital financial assets including crypto assets.

Chief Executive of Financial Sector Technology Innovation Supervision, Financial Assets and OJK Crypto Assets Hasan Fawzi said that currently his party is still waiting and preparing government regulations regarding the transfer of authority and supervision of digital financial assets including crypto assets.

"This government regulation has entered the stage of harmonization, rounding and strengthening the concept that has been submitted to the Ministry of Law and Human Rights," he explained at a press conference, Tuesday, January 9.

Hasan explained that the OJK had also held discussions with the Ministry of Finance (Kemenkeu) in the context of harmonization and finalization of the Draft Government Regulation (RPP) regarding the Transfer of Digital Financial Asset Regulation and Supervision Tasks including Crypto Assets and Financial Derivatives which had entered the harmonization stage by the Ministry of Law and Human Rights.

"OJK will coordinate with Bank Indonesia (BI) and CoFTRA in preparing for the transition in a Transition Team which will be coordinated by the OJK," he said.

In addition, OJK is currently preparing a Memory of Understanding with the World Bank, Cambridge Center for Alternative Finance (CCAF), Bank Negara Malaysia, Monetary Authority of Singapore, Thailand SEC, Dubai Virtual Asset Regulatory Authority (VARA), as well as other relevant authorities in order to strengthen policies, regulations, and supervise ITSK and digital financial assets including crypto assets.

Based on Law (UU) Number 4 of 2023 concerning Strengthening the Financial Sector (P2SK), the shift in crypto trading supervision from CoFTRA to OJK is targeted for completion in January 2025.

Regarding the development of crypto assets in Indonesia, the number of domestic crypto asset investors was recorded as increasing trend, as of November 2023 the total number of crypto asset investors reached 18.25 million investors or an increase of 190,000 investors compared to the previous month.

The transaction value of crypto assets began to show an increasing trend after it tended to decline since the COVID-19 pandemic, with the transaction value of crypto assets in November 2023 recorded at IDR 17.09 trillion.