OJK: The Transfer Of Tasks To Supervision Of Crypto Assets Is Part Of A Major Transformation

Chief Executive of Financial Sector Technology Innovation Supervision, Digital Financial Assets and OJK Crypto Assets Hasan Fawzi. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) stated that the transition of crypto asset management and supervision tasks from the Commodity Futures Trading Supervisory Agency (CoFTRA) to OJK is part of a major transformation in order to create a more integrated digital financial ecosystem.

"In principle, of course, we mean that the transfer of the task of regulating and supervising crypto assets from CoFTRA to OJK is part of a major transformation in order to create a digital financial ecosystem which in the future is expected to be more integrated, transparent, and accountable," said the Chief Executive of the Financial Sector Technology Innovation Supervision, Financial Assets and OJK Crypto Assets Hasan Fawzi at the Financial Services Sector Press Conference and OJK Policy Results from the Monthly Board of Commissioners (RDKB) Meeting (RDKB) December 2024, quoted by Antara, Wednesday, January 8.

From the start, a series of preparations for the transfer of tasks were carried out in stages and carefully through coordination between the two related institutions, as well as all business actors in the crypto asset activity ecosystem in Indonesia.

Preparations from the OJK refer to the mandate of the Law (UU) on the Development and Strengthening of the Financial Sector (P2SK) as well as government regulations regarding the transfer of this task which is in the process of being promulgated and published.

As a form of OJK's commitment in preparing for this transition, his party has carried out various initiatives.

First, the OJK intensively coordinates both with CoFTRA and with business actors in crypto asset activities in Indonesia in order to ensure harmonization and continuation of policies, regulations, and supervision.

Second, his party has compiled a regulatory device and has issued OJK Regulation Number 27 of 2024 along with the implementation rules of the OJK SE (Circular) Number 20 of 2024 which regulates the implementation of trading for digital financial assets, including crypto assets, which will become the initial legal basis for operations after the transfer of tasks later. The two provisions come into effect from January 10, 2025.

Third, OJK has prepared information system infrastructure to support technology-based surveillance which is expected to become the OJK's supervisory capacity for digital financial asset activities, including crypto assets.

Fourth, a guidebook for transition and supervision guidelines that will be the main reference for business actors and stakeholders related to crypto asset activities has been prepared.

Finally, his party continues to establish close coordination with various parties, including the Attorney General's Office of the Republic of Indonesia (RI), the Center for Financial Transaction Reports and Analysis (PPATK), and the Indonesian Police to strengthen aspects of supervision of the use of digital financial assets and crypto assets. This coordination is mainly in the aspect of fulfilling legal compliance and risk mitigation to prevent money laundering

Technically, OJK collaborates with CoFTRA to form a transition team that aims to coordinate all strategic and technical aspects of the transfer of tasks. Starting from document identification and data to be handed over, mapping licensing status, and availability of regulations, evaluating and ensuring the readiness of all business actors, to preparing resources that will be related to the transfer of management tasks and supervision of crypto assets.

The transition team also identified the scope and details of the transfer that would be outlined in the form of handover minutes, in the form of documents or related data, with the regulation and supervision of crypto assets.

"Furthermore, a signing will be carried out on the handover report, which God willing, will be carried out in the near future in accordance with the date of the transfer of duty, namely on January 10, 2025," said Hasan.

His party has also prepared various initiatives to ensure the capacity of the supervisory aspect, including compiling various internal guidelines related to the implementation of supervision for digital financial assets (including crypto assets), developing the subject's capacity in conducting crypto surveillance which is expected to be effective and efficient.

"In the context of KYE (know your entity), we have conducted profiling on the industry and business actors of crypto asset activities and have also made various capacity building efforts for human resources (human resources) supervisors at our place, both through cooperation in domestic and regional and global," he said.