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January 15, 2025 | 09:54 am
TEMPO.CO, Jakarta - Indonesia's Financial Services Authority (OJK) ensures that supervision and regulation of crypto assets under the authority of the institution will not reduce the essence of decentralization in crypto.
Crypto asset trading has so far used blockchain technology which allows the transaction process to be spread across the network and not centralized in a central authority. This means that with this technology, third parties such as supervisory institutions are not directly involved in every crypto asset transaction.
"We hope that the presence of supervisors such as OJK in the future will not aim to eliminate this decentralized nature," said Chief Executive of the Financial Sector Technology Innovation Supervisory Agency, Digital Financial Assets, and OJK Crypto Assets Hasan Fawzi in an online press conference on Tuesday, January 14, 2025.
Supervision of crypto assets under OJK, continued Hasan, aims to ensure that the implementation of crypto asset activities runs safely, fairly, orderly, and efficiently. Not only that, OJK supervision is also considered to be able to minimize risks that can harm many parties involved in crypto asset transactions.
"Crypto assets based on blockchain technology have enormous potential in the future to be able to work with others to drive innovation in the financial services sector," said Hasan. However, this potential also presents various challenges in the financial services sector, especially regarding security, market integrity, and consumer protection.
"This is certainly where the role of OJK as a supervisor is expected to be able to mitigate risks and protect the interests of various parties, especially consumer protection," he said.
The transfer of supervisory duties under OJK has also had an impact on the crypto industry. The category of crypto assets has now changed to financial instruments and assets. While previously under the supervision of the Ministry of Trade (Kemendag), crypto assets were classified as part of commodity assets.
"This change certainly also has an impact on the way crypto assets are regulated and supervised in Indonesia, including in the regulatory and supervisory approach," said Hasan.
Hasan explained that under the authority of the Ministry of Trade, the regulation of crypto assets was focused on the trading aspect and the organization of its futures market. Now that the regulatory duties are in the hands of OJK, the scope of supervision and regulation of crypto assets has become broader.
"Not only does it cover supervision of transactions and trade but also various other aspects, including aspects of product and service development, aspects of offerings," said Hasan. In addition, OJK also supervises risks, systemic impacts, governance aspects, and aspects of integration with other financial sectors.
Previously, the Commodity Futures Trading Supervisory Agency (Bappebti) of the Ministry of Trade officially transferred the function of regulating and supervising digital financial assets, including crypto assets and financial derivatives to OJK. This transfer of duties was inaugurated by the signing of the handover minutes and memorandum of understanding at the Ministry of Trade Office on January 10, 2025.
Minister of Trade Budi Santoso said that the transfer of this supervisory function was carried out to provide legal certainty for the digital financial sector and financial derivatives. The Ministry of Trade, said Budi, supports the transition so that the transfer can take place transparently and provide security for market players and economic actors.
"We are sure that this step will bring long-term benefits to the financial sector and the physical market for crypto assets in Indonesia," said Budi in an official statement, Friday, January 10, 2025.
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