Indonesia’s plan to move cryptocurrency oversight from the Ministry of Commerce’s Commodity Futures Trading Agency (Bappebti) to the Financial Services Authority (OJK) has yet to materialize.
The transition, foreseen by the Financial Sector Law, was supposed to be completed by January 12, 2025but progress has stalled due to the absence of supportive government regulation, according to a This was reported by the local media Jakarta Globe.
According to the report, OJK President Mahendra Siregar addressed the issue at the opening of the 2025 stock market in Jakarta, saying that preparations and discussions are ongoing.
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The draft government regulation awaits formal issuance
Siregar was quoted as saying that a draft government regulation has been prepared in an official format but awaits formal issuance. “We have worked closely with the Ministry of Commerce to ensure a smooth process. The regulation will provide the legal basis for the transition,” he said.
Experts have expressed concern about the delay. Digital economy expert Nailul Huda criticized the government’s slow response, suggesting the Ministry of Commerce’s reluctance to relinquish control.
Huda also highlighted the importance of a smooth transition, noting that OJK’s experience could benefit the country’s thriving cryptocurrency industry, even if stricter regulations are introduced.
Industry players, including cryptocurrency brokers and exchanges, are eager for the transition to bring legal clarity. Ibrahim Assuaibi, director of Laba Forexindo Berjangka, said the move would simplify supervision and facilitate direct transactions under the supervision of OJK and Bank Indonesia.
Likewise, Triv CEO Gabriel Rey appreciated OJK’s efforts to ensure continuity with Bappebti’s existing structure.
Both OJK and Bappebti reiterated their willingness to transition. OJK Commissioner Hasan Fawzi highlighted the agency’s extensive studies on global cryptocurrency regulatory practicesWhile Bappebti boss Kasan confirmed that the current rules will remain in place until the new regulation comes into force.
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Binance-Backed Tokocrypto Gets License in Indonesia
Last year, Binance subsidiary Tokocrypto obtained a full license by the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
Since 2014, Indonesian exchanges have been classified as “potential cryptocurrency exchanges”. They operate within provisional regulatory frameworks. Tokocrypto was registered in 2019 as a Prospective Physical Crypto Asset Trader (CPFAK).
We are excited to announce that Tokocrypto, a part of the #Binance group, has secured a Physical Crypto Asset Trader (PFAK) license from Indonesian Bappebti.
This milestone highlights our commitment to regulatory compliance and investor confidence.
Read more
… pic.twitter.com/zMxZ2yQJ5g
— Binance (@binance) September 9, 2024
The move has arrived After Bappebti mandate 2019. It requires all cryptocurrency exchanges must apply for proper authorization to continue operating legally in the country.
Data from CoinGecko shows that Tokocrypto held a dominant 43% share of Indonesia’s centralized exchange market in 2023making it the largest cryptocurrency exchange by trading volume. Indodax follows closely with a 42% market share, while Upbit Indonesia holds 15%.
It is worth noting that Indonesian cryptocurrency exchange Indodax suffered a cyber attack in September. The hacking caused the theft of over $22 million in various tokens. The attack reportedly targeted Indodax hot wallets to security researchers at Slowmist and CertiK.
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