OJK Calls The Process Of Transfer Of Crypto Asset Supervision From CoFTRA Continues

Chief Executive of Financial Sector Technology Innovation Supervision, Digital Financial Assets and Crypto Assets of the Financial Services Authority (OJK) Hasan Fawzi. (Photo: Aris Nurjani/VOI)

JAKARTA - Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets and Crypto Assets of the Financial Services Authority (OJK) Hasan Fawzi said the process of transitioning crypto asset supervision from the Commodity Futures Trading Supervisory Agency (CoFTRA) to OJK is still ongoing.

According to Hasan, one of the focuses in joint discussions with CoFTRA, and the Financial System Stability Committee (KSSK) is the provision for crypto taxes.

"Later on, after that, we will switch to the OJK, of course we will discuss the tax aspect. So, it will be a discussion material to be coordinated in the KSSK forum. Hopefully there will be a solution," he told the media crew, Tuesday, March 26, 2024.

The OJK has issued OJK Regulation Number 3 of 2024 (POJK 3/2024) concerning the Implementation of Financial Sector Technology Innovation (ITSK).

POJK 3/2024 is the sustainability of Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UU P2SK), aiming to strengthen financial ecosystems that utilize technological innovations, including financial technology (fintech) and digital financial assets such as crypto.

Hasan assessed that the POJK will create consumer protection and risk mitigation in financial sector technology. On the same occasion, the OJK develops a regulatory sandbox or testing room or innovation development in the financial sector.

Hasan said, for innovators who want to develop a business model, they must be licensed, including having to apply or register with the sandbox regulatory in the OJK. The same applies to products or services on crypto assets.

According to him, if the crypto surveillance and regulatory transition has entered the OJK, there is an obligation to follow the sandbox.

"We invite new initiatives related to business models or innovations, new mechanisms, new products or services that are carried out for digital finance in general, including crypto asset activities, so the same as other digital financial assets, crypto assets are included in one ITSK," he said.

Meanwhile, Deputy Commissioner for Financial Sector Technology Innovation Supervision, Digital Financial Assets and Crypto Assets Moch Ihsanuddin said that currently his party is waiting for Government Regulations (PP) which will be issued no later than January 12, 2025.

"For now, the PP process is still in discussion or harmonization at the Ministry of Law and Human Rights (Kumham), and will process it to the State Secretariat (Sesneg)," he said.

While waiting for PP, he said, OJK also continues to communicate with crypto actors and conducts Focus Group Discussion (FGD).

Previously, taxes collected for crypto transactions were divided into two, namely for crypto asset sellers, namely income tax (PPh) and for crypto asset buyers subject to Value Added Tax (VAT).

The PPh for selling tax-listed crypto assets that must be paid is 0.1 percent of the transaction value, while the VAT is 0.11 percent of the transaction value.

Meanwhile, those who have not been registered with CoFTRA, have higher tax levies, namely PPh 0.2 percent and VAT 0.22 percent.

For information, until early 2024, the total value of crypto asset transactions reached Rp48.82 trillion, and Indonesia was ranked seventh as the country with the highest number of crypto asset investors in the world.

On the other hand, the number of domestic crypto asset investors continues to grow, reaching 18.83 million investors in January 2024.