The P2SK Law Removes Crypto Supervision From CoFTRA To OJK

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The ratification of the Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK) into law today has made a number of fundamental changes in the financial industry in Indonesia, one of which is related to crypto transactions.

Minister of Finance (Menkeu) Sri Mulyani representing the government said the executive and legislative agreement to transfer digital financial asset supervision including crypto assets to the Financial Services Authority (OJK).

"This is intended so that digital financial asset arrangements and supervision are stronger, especially in terms of investor or consumer protection aspects," he said at the Senayan Parliament Complex, Jakarta on Thursday, December 15.

According to the Minister of Finance, this also shifts the role of the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade, which was previously responsible for all digital asset transactions.

"The government agrees with the DPR's view that it will take time for the transition between the Financial Services Authority and CoFTRA to be good and optimal without disrupting the ongoing development of crypto asset transactions," he stressed.

In addition to crypto, the P2SK Law specifically also strengthens OJK's duties and functions in the implementation of the supervisory function of technology innovation in the financial sector (fintech).

Integrated supervision under the Financial Services Authority is needed so that the development and strengthening of the financial sector occurs as a whole, not only in developing sectors such as banking but also in capital markets, pension funds, insurance, and relatively new industries such as financial sector technological innovation (fintech) and digital financial asset transaction activities, "said the state treasurer.