OJK Prepares Crypto ETF Regulations In Indonesia, See The Potential And Risk

Hasan Fawzi, OJK (photo: Dinda Buana/VOI)

JAKARTA - The Financial Services Authority (OJK) is reviewing policies related to the crypto Exchange Trade Fund (ETF) in Indonesia, as a synergy effort between the crypto asset industry and the capital market sector.

Crypto ETF is an investment instrument that allows investors to get exposure to crypto assets without having to buy or store these assets immediately.

Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets, and OJK Crypto Assets, Hasan Fawzi, explained that globally, digital financial asset-based ETFs, including crypto, have started obtaining licensing in several countries.

"If the ETF was indeed an instrument in the capital market area because it would be classified as part of the effect. However, seeing global trends, there have been permits for ETF instruments that say the underlying includes components of digital financial assets, including crypto assets," Hasan said when met in the Jakarta area on Thursday, February 13.

Hasan said that the study related to crypto ETF was being studied by the Digital Financial Assets (AKD) division and the Capital Market (PMDK) division, in order to see the potential and risks that would arise.

"Later on, the results of the study and trial will certainly underlie the formulation of future arrangements and permits," Hasan told the media crew.

However, he emphasized, one of the important things in this study is determining which crypto assets deserve to be included in the ETF. OJK emphasized that the selection will be based on the principle of risk management, not just the popularity of assets.

"Well, what is related to risk management is of course determining which coins are said to be safe enough and do not pose a high risk impact if they are later allowed to be part of the ETF," he concluded.