Indonesian FSA crypto oversight transition stalled due to lack of government bill: report

The transition of oversight of crypto assets in Indonesia from the Commodity Futures Trading Agency to the Financial Services Authority has reportedly been delayed due to the lack of supportive government regulation.

According to a recent report by Jakarta Globe, the transition of the crypto assets supervisory authority from the previous agency, Bappebti, under the Ministry of Commerce, to Financial Services Authority is expected to take place by January 12, 2025. However, the transfer could be further delayed due to the lack of supporting government regulations.

The president of the Indonesian FSA, known locally as OJK, Mahendra Siregar, assured reporters that authorities were currently coordinating discussions and making necessary preparations for the incoming transfer.

“We are working closely with the Ministry of Commerce to ensure a smooth process. Once the regulation is published, it will provide the legal basis for the transition,” Siregar said.

The plan to transfer oversight of crypto assets from Bappebti to OJK was first presented by Finance Minister Sri Mulyani in late 2022. The bill needed to officiate the transition between the two government bodies would require the legislature and executive of the Indonesian government reach an agreement. agreement on all provisions. At the time of writing, the government’s official draft law for the January 12 transition has not yet been published.

According to the report, OJK and Bappebti confirmed that they were preparing for the transition. OJK Commissioner Hasan Fawzi said the agency was studying how different countries implemented crypto regulations and training its regulators to take on the role. While Bappebti chief Kasan said the existing rules regarding crypto in the country would remain in effect until new regulations are promulgated by the OJK.

Many local industry players, including brokers and securities firms, are anticipating the transition as they see the move as a step forward in regulating the crypto industry and legitimizing crypto trading for investors. OJK works closely with Indonesia’s central bank to regulate financial sectors, which could potentially streamline crypto regulations in the future.

In December, Bank Indonesia completed the proof of concept needed for Project Garuda, the pilot project for the Indonesian central bank’s digital currency.