Indonesia’s plan to shift crypto asset supervision from the Commodity Futures Trading Agency (Bappebti) under the Trade Ministry to the Financial Services Authority (OJK) has yet to materialize.
The transition, mandated by the Financial Sector Law, was expected to be completed by January 12, 2025, but progress has stalled due to the absence of supporting government regulation, according to a report by local media outlet Jakarta Globe.
Per the report, OJK Chairman Mahendra Siregar addressed the issue at the 2025 stock market opening in Jakarta, stating that preparations and discussions are ongoing.
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Draft Government Regulation Awaits Formal Issuance
Siregar reportedly said that a draft government regulation has been prepared in an official format but awaits formal issuance. “We’ve been working closely with the Trade Ministry to ensure a seamless process. The regulation will provide the legal basis for the transition,” he said.
Experts have voiced concerns over the delay. Digital economy expert Nailul Huda criticized the government’s slow response, suggesting reluctance from the Trade Ministry to relinquish control.
Huda also highlighted the importance of a smooth transition, noting that OJK’s experience could benefit the country’s burgeoning crypto industry, even if stricter regulations are introduced.
Industry players, including brokers and crypto exchanges, are eager for the transition to bring legal clarity. Ibrahim Assuaibi, Director of Laba Forexindo Berjangka, said the handover would streamline oversight and facilitate direct transactions under OJK and Bank Indonesia’s supervision.
Similarly, Triv CEO Gabriel Rey appreciated the OJK’s efforts to ensure continuity with Bappebti’s existing framework.
Both OJK and Bappebti have reiterated their readiness for the transition. OJK Commissioner Hasan Fawzi highlighted the agency’s in-depth studies on global crypto regulation practices, while Bappebti Head Kasan confirmed that current rules would remain in place until the new regulation is enacted.
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Binance-Backed Tokocrypto Gains License in Indonesia
Last year, Binance subsidiary Tokocrypto secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
Since 2014, Indonesian exchanges have been categorized as “prospective crypto exchanges.” They operating under provisional regulatory frameworks. Tokocrypto was registered in 2019 as a Prospective Physical Crypto Asset Trader (CPFAK).
We are thrilled to announce that Tokocrypto, a part of the #Binance group, has secured a Physical Crypto Asset Trader (PFAK) license from Indonesia’s Bappebti.
This milestone highlights our commitment to regulatory compliance and investor trust.
Read more
… pic.twitter.com/zMxZ2yQJ5g
— Binance (@binance) September 9, 2024
The move came after Bappebti’s 2019 mandate. It requires all crypto exchanges to seek proper authorization to continue operating legally in the country.
Data from CoinGecko shows Tokocrypto held a commanding 43% share of Indonesia’s centralized exchange market in 2023, making it the largest crypto exchange by trading volume. Indodax follows closely with a 42% market share, while Upbit Indonesia holds 15%.
It is worth noting that Indonesian crypto exchange Indodax suffered a hack in September. The hack caused theft of over $22 million worth of various tokens. The attack targeted Indodax’s hot wallets, according to security researchers from Slowmist and CertiK.
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The post Indonesia Fails To Transfer Crypto Oversight From Trade Ministry To Financial Services Authority appeared first on 99Bitcoins.
