Indonesia’s Crypto Regulation Transfer Faces Delays Amid Lack of Government Support

Indonesia’s plan to transfer the oversight of crypto assets from the Commodity Futures Trading Agency (Bappebti) to the Financial Services Authority (OJK) is facing delays due to a lack of supporting government regulation.

Initial Transition Plan

The transition was initially set to occur by January 12, 2025. However, the transfer may be delayed further due to the absence of a government bill to officiate the transition between the two government bodies. Indonesian Finance Minister Sri Mulyani first introduced the plan to hand over crypto asset supervision from Bappebti to OJK in late 2022.

According to Mahendra Siregar, Chairman of the Indonesian FSA (OJK), authorities are currently coordinating discussions and making necessary preparations for the incoming transfer.

“We’ve been working closely with the Trade Ministry to ensure a seamless process. Once the regulation is issued, it will provide the legal basis for the transition,”

said Siregar.

Preparations and Expectations

Both OJK and Bappebti have confirmed that they are bracing for the transition. OJK Commissioner Hasan Fawzi stated that the agency has been studying how different countries implement crypto regulations and are training its regulators to take on the role. Meanwhile, Bappebti Head Kasan said the existing rules regarding crypto in the country would remain effective until new regulations are enacted by OJK.

Industry Impact and Expectations

Local industry players, including brokers and exchange firms, are anticipating the transition because they see the move as a step forward in regulating the crypto sector and legitimizing crypto trading for investors. OJK works closely with the central bank of Indonesia in regulating the financial sectors, which could potentially streamline crypto regulations in the future.

Related Developments

In December, Bank Indonesia completed the Proof of Concept necessary for Project Garuda, the pilot project for Indonesia’s very own central bank Digital Currency. This development could potentially pave the way for further digital currency adoption in the country.

For more news on the latest developments in the world of cryptocurrencies and blockchain technology, visit Global Crypto News.

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