Indonesia’s Financial Regulator Issues New Crypto Regulations Ahead of January 2025 Transition
The Financial Services Authority (OJK), Indonesia’s financial services watchdog, released new rules on March 13 that will cover cryptocurrencies and will come into force in January 2025.
The financial regulator released fresh directives that cover actions relating to digital financial assets like cryptocurrency. It is believed that these fresh directives will strengthen the financial industry.
To bolster the entirety of the financial sector, the latest directives spell out how novel technologies can be leveraged as opportunities emerge. This was directed at financial sector players including banks, insurance corporations, and many others.
The directives explore how financial services and products are impacted by the introduction of new financial sector innovations. This allows scrutiny of the digital operations of financial institutions.
Concerns for customers also take centre stage in the latest guidelines. For instance, customer protection, conducting pilot testing of technological innovations, and test result reporting are highlighted.
At the moment, technical in-depth coverage is not possible because the latest directives lack specifics. Notwithstanding, it’s foundational for overseeing cryptocurrency’s financial innovations in Indonesia.
This crypto regulation’s introduction demonstrates OJK’s proactive moves to get ready to take up crypto control by January 2025.
OJK is not working on this alone. A transition team comprising professionals from Bank Indonesia and Bappebti, the incumbent crypto regulator, has been instituted. This team will oversee the change in digital financial asset supervision.
Hope remains that OJK’s action of releasing the legal framework will allow increased adoption of cryptocurrencies and
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