JAKARTA - The Draft Law on the Development and Strengthening of the Financial Sector (UU P2SK) which is currently being discussed by the Indonesian House of Representatives (DPR RI) is still a concern for crypto industry players in Indonesia.
Although the DPR emphasized the importance of investor protection in the revision of these rules, a number of articles were considered potentially threatening the sustainability of the crypto asset industry in the country, including the Digital Financial Asset Trader (PAKD) business model.
According to industry players, Articles 215B, 215C, and 312A point C, are seen as giving dominant space to the crypto asset exchange in the implementation of digital trading, as well as potentially eliminating the role of PAKD which has been the backbone of crypto asset trading.
According to industry players, this regulation has the potential to cause market centralization, reduce competition for independent crypto traders, and trigger major restructuring in the industry ecosystem.
Another concern is the decline in the competitiveness of local actors, as well as the increased potential for domestic investors to switch to using foreign crypto trading platforms.
Responding to the controversy over the revision of the P2SK Law, the Chairman of the Membership Committee of the Indonesian Blockchain Association (ABI) and CEO of Tokocrypto, Calvin Kizana, said that regulations must be able to balance between investor protection and the sustainability of industry innovation.
"Regulations are important for market order, but if they are too restrictive, they will weaken the local crypto ecosystem," Calvin said in his statement quoted on Sunday, February 15.
Calvin assessed that when the crypto industry is experiencing a slowdown in transactions, policies that are too restrictive can worsen market conditions and trigger the risk of moving trading activities abroad.
"If the industrial structure becomes too centralized and does not provide a healthy space for local players, then the risk of capital flow out is getting bigger, including the movement of Indonesian investors to foreign exchanges," he said.
For this reason, the Indonesian Blockchain Association (ABI) encourages the revision of the P2SK Law to open up opportunities for wider use of cryptocurrencies, including as part of strengthening the national digital payment ecosystem.
ABI menilai regulasi saat ini masih terbatas pada fungsi kripto sebagai instrumen investasi, sementara potensi integrasi teknologi blockchain dan aset digital dalam transaksi modern masih terbuka.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
