OJK Emphasizes Transparency, Security, And Education In The Crypto Industry

Photo: Special

JAKARTA - The Financial Services Authority (OJK) affirms its commitment to overseeing the crypto asset industry to ensure consumer protection, transaction security, and transparency in the digital financial asset ecosystem.

Since January 10, 2024, in accordance with the mandate of the Financial Sector Development and Strengthening Law (UU P2SK), the official regulation and supervision of crypto assets has shifted from CoFTRA to OJK. This step is expected to improve governance, transparency, and consumer protection in trading digital assets in Indonesia.

The OJK applies a principle-based approach that balances regulation and support for innovation.

"We emphasize the importance of consumer transparency and protection in maintaining public trust in this industry," said Head of the OJK Department of Financial Sector Technology Arrangement and Licensing, Digital Financial Assets and Crypto Assets (IAKD) Djoko Kurnijanto.

In an effort to increase public understanding of crypto assets, the Indonesian Blockchain Association (ABI) and the Indonesian Crypto Asset Traders Association (Aspakrindo) again held the annual Crypto Literacy Month (BLK) program as part of the industry's commitment to increasing digital asset education.

This year, ABI and Aspakrindo collaborated with the Financial Services Authority (OJK) to strengthen literacy efforts and encourage a wider understanding of crypto assets and blockchain technology in Indonesia, as part of the discourse.

Data shows that the level of financial literacy in Indonesia is still relatively low, with general financial literacy at 65%, digital financial literacy at around 45 percent, and global understanding of crypto assets reaching only 31.8 percent.

"We emphasize the importance of independent research (Make Your Own Research) before investing in crypto assets," added Djoko.

Director of Supervision of OJK's Digital Financial Assets and Crypto Assets, Uli Agustina, emphasized that OJK has two main functions, namely as a regulator and as a market conductor supervisor for consumer protection.

"We are not only monitoring post-events, but also focusing on literacy and education through programs such as the Crypto Literacy Month, Fintech Month, and various other digital initiatives," he explained.

As part of its commitment to transparency and security, Indodax together with OJK and associations continue to support various financial literacy programs, including public education about investing in secure and verified crypto assets.

Kasubdit III Dittipideksus Bareskrim Polri, Kombes Pol. Robertus Yohanes De De Deo Tresna Eka Trimana, highlighted three main categories in relation to crypto assets: as subjects of crime, means of crime, and objects of crime.

"Collaboration between regulators, industry players, and law enforcement is very important to prevent crime modes such as fraudulent investments and money laundering through digital assets," he said.

Robert explained that the digital asset industry is growing rapidly and has the potential to become a means of money laundering.

"We have been conducting various studies since 2009 on the use of digital assets in financial crimes. Therefore, dialogue and information exchange between regulators, industry players, and law enforcement are key in mitigating these risks," he added.

Kanit 2 Subdit 2 Dittipidsiber Bareskrim Polri, AKBP Irvan Reza, added that although anonymity in digital assets is a challenge, blockchain-based crime investigations are actually easier than conventional money laundering methods.

"We continue to increase risk mitigation with various related parties, including crypto asset service providers. Even though the IT system is never really safe, industry players in Indonesia have tried to implement the best security," he explained.

He also reminded that the main challenges in cybersecurity often stem from human factors and not just from the IT system itself.

INDODAX Vice President of Business Development, Mohammad Naufal Alvira, emphasized the importance of protecting user funds and data by implementing a layered security system.

"We use two-factor authentication (two-factor authentication), cyber threat detection, and have a special security team for risk mitigation. INDODAX also continues to educate its users to understand the importance of digital security, such as using Google Authenticators and account security independently," he said.

In addition to protecting users, INDODAX also strengthens internal security with a cybersecurity special team that handles potential threats from outside.

"We built a strong internal security foundation before conveying education to users. This includes threat mitigation through external email monitoring, early detection systems, and internal coordination in the face of cyber threats," added Naufal.

"We always open the door as wide as possible to increase user confidence. Trust is a difficult thing to get and must be maintained properly. Therefore, we continue to strengthen the security system and provide the best service for users," said Naufal of INDODAX.

As part of efforts to strengthen security and transparency, INDODAX invites all users to raise awareness of digital security and make transactions only on officially licensed platforms.