With the new regulations, cryptocurrency products must comply and pass the Regulatory Sandbox or be considered illegal in Indonesia. The regulations are expected to take effect in January 2025.
This initiative was launched by the Financial Services Conduct Authority (OJK) to protect consumers and minimize the risks associated with cryptocurrencies. Accordingly, cryptocurrency companies will need to go through the sandbox mechanism to be licensed to operate in Indonesia.
Mr. Hasan Fawzi, Head of OJK Financial Technology, Digital Financial Assets and Cryptocurrency Supervision Department, said: “This regulation is in line with OJK's direction, especially on protection and education user. We hope our regulatory mechanisms will have a direct impact on preventing fraudulent investments.”
According to him, these regulations allow cryptocurrency businesses to become familiar with the regulations and supervision enforced by the OJK, which was the OJK's position from earlier this month.
Regulatory Sandbox, also known as "experimental management mechanism", is an environment set up by regulators to create conditions for organizations to test new products, services or business models. innovative and creative in the Fintech field when there is no specific legal regulation.
This industry in Indonesia is currently monitored by the Commodities and Futures Authority (Bappebti), as crypto assets are classified as commodities. Once supervised by the OJK, cryptocurrencies will most likely be reclassified as financial instruments.