Assessing the Urgency of Proof of Reserve (PoR) and the P2SK Law in Ensuring the Safety of Crypto Investor Funds in Indonesia

Illustration. (Photo: Unsplash)

JAKARTA - In the midst of the rapid adoption of digital assets in the country, the issue of transparency of the cryptocurrency exchange has once again become the main spotlight. The implementation of Proof of Reserve (PoR) is now seen not only as a technical trend, but a fundamental pillar in exchange governance (good corporate governance) to mitigate systemic risks and protect customer funds.

Market observer for currencies and digital assets, Ibrahim Assuaibi, emphasized that PoR is a crucial instrument to restore public confidence that had been shaken by global volatility. With this mechanism, the exchange provides access to the public and regulators to verify that customer assets are actually available 1:1 and are not misused for risky activities.

"Proof of Reserve is a new transparency standard that has been initiated by two major exchanges in Indonesia. This is the main foundation for a healthy crypto ecosystem, not just a technical obligation," said Ibrahim, Friday, January 16.

Harmonization with the P2SK Law and OJK Supervision

Furthermore, Ibrahim highlighted the importance of synchronization between industry initiatives such as PoR with formal regulations. The presence of the Financial Sector Development and Strengthening Law (UU P2SK) will be a legal umbrella that strengthens the authority of the Financial Services Authority (OJK) in overseeing and prosecuting violations in the crypto industry.

Ibrahim suggested that transparency aspects such as PoR be integrated into the revision of the P2SK bill to:

1. Reducing the Risk of Abuse: Avoiding the use of customer funds for exchange operational purposes. 2. Increasing Accountability: Providing stronger tracking authority for regulators, similar to the audit function in the taxation sector. 3. Mitigating the Risk of Default: Ensuring that exchange liquidity is maintained in extreme market conditions.

In Indonesia, the only official exchange that implements verified PoR in the global blockchain system is Indodax. As of mid-January 2026, Indodax's total PoR reached IDR 13.5 trillion.

Indodax announced Proof of Reserves (PoR) based on data displayed on the Proof of Reserves feature on CoinMarketCap. This achievement confirms Indodax's commitment to maintaining 1:1 asset reserves and promoting public verifiable transparency through on-chain data.

Parliament push: Consumer protection is a dead price

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, emphasized that the main focus of the revision of the P2SK Law is consumer protection and transparent supervision. According to him, the crypto asset industry must prioritize prudent governance.

"The spirit of revising the P2SK Law is to protect consumers and ensure transparent supervision. Every organizer is required to carry out activities with strong governance because crypto assets have now been recognized as financial assets," said Misbakhun.

He added that transaction transparency is a dead price. In the upcoming revision of the rules, every trading activity must be clearly identifiable, from the profile of the actors, funding sources, to the parties responsible for the transaction. This is crucial to maintain market stability and public confidence.

How does PoR work?

Technically, PoR uses cryptographic methods to prove asset reserves without having to expose sensitive data or individual user balances. Through periodic independent audits, exchanges show that the total assets stored (on-chain) are equal to or exceed the total liabilities to users (liabilities).

Although PoR is not the only absolute solution for cybersecurity, its presence is a revolutionary step in building a transparent and sustainable crypto asset ecosystem in Indonesia. The integration between technological innovation and regulatory firmness (P2SK Law) will be the key to the competitiveness of the domestic crypto market in the future.