Indonesia is set to tighten regulations for the cryptocurrency sector by introducing a requirement for all crypto products to undergo a special regulatory testing environment. These measures aim to protect against fraud and will come into effect at the beginning of next year.
With the transition of supervision to the OJK in January 2025, crypto organizations will have to undergo verification processes within the regulatory sandbox to obtain official permission to operate in Indonesia. "This step reflects our commitment to protecting and educating consumers, which is crucial for us at OJK," said Hasan Fawzi, head of the Department of Oversight of Financial Technologies, Digital Assets, and Cryptocurrencies, adding that these regulatory procedures should help protect against fraudulent investments. Companies offering their services without prior assessment in the sandbox will be considered illegal entities.
The regulatory sandbox functions as a safe space for testing and innovation, enabling the evaluation of products and ensuring their security and reliability. This approach provides an isolated environment for testing, contributing to better protection and responsible management in the financial sector. Currently, Bappebti oversees the crypto sector, as cryptocurrencies are considered commodities. After the OJK takes over supervision, cryptocurrencies will likely begin to be classified as financial instruments.
The sandbox also offers crypto companies the opportunity to adapt to regulations and oversight conducted by the OJK, emphasized Hasan, reaffirming his stance earlier in the month.
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