When the Financial Services Authority (OJK) takes over industry oversight in January 2025, cryptocurrency companies will first need to undergo evaluation in a regulatory sandbox before being granted a licence to operate in Indonesia.
At a press conference on Tuesday, Hasan Fawzi, the regulator’s head of supervision for financial technology, digital financial assets, and cryptocurrency, stated, “This aligns with our spirit at OJK, particularly in consumer protection and education.” “We expect our regulatory mechanisms to directly impact the prevention of fraudulent investments.”
Businesses will be deemed to be conducting illicit business if they provide services within the nation without first being assessed in the sandbox.
A regulatory sandbox is a testing and innovation development area for products to ensure their dependability and safety. It offers a private setting in which to test ideas to improve security and ethical practices in the banking industry.
Since cryptocurrency assets are categorised as commodities, the business is now overseen by Bappebti, the regulator for commodities and futures trading. Cryptocurrency will probably be classed as financial instruments once it comes under OJK’s jurisdiction.
Reiterating a position from earlier this month, Hasan stated that the regulatory sandbox also enables cryptocurrency enterprises to become acclimated to the rules and oversight applied by OJK.