OJK Takes Charge of Crypto Regulation

Cryptocurrency, previously overseen by Bappebti as commodities, may now be reclassified as financial instruments under OJK regulation.

In January 2025, the Financial Services Authority (OJK) of Indonesia assumed regulatory responsibilities for the cryptocurrency sector, replacing the commodities agency Bappebti.

Before being granted permission to operate in the country, cryptocurrency companies must complete an assessment in a sandbox environment conducted by the new regulator.

Before obtaining a license to operate in Indonesia, cryptocurrency firms will be assessed in a regulatory sandbox following the transfer of industry oversight to the Financial Services Authority in January 2025.

On Tuesday, during a media briefing, Hasan Fawzi, the regulator’s director of supervision for financial technology, digital financial assets, and cryptocurrencies, stated, “This is consistent with our values at OJK, especially regarding consumer protection and education.”

“We anticipate a direct correlation between our regulatory mechanisms and preventing fraudulent investments.”

Businesses that provide services within the nation without undergoing a sandbox evaluation will be deemed to be operating in violation of the law.

OJK’s Regulatory Sandbox

A regulatory sandbox functions as a space for innovation development and testing, where products are assessed to ensure their safety and dependability.

It provides a sequestered environment in which trial runs that contribute to improving financial sector security and responsible management can be conducted.

As crypto assets are categorized as commodities, the commodities and futures trading regulator, Bappebti, oversees the sector. Once crypto is subject to OJK regulation, it will probably be reclassified as a financial instrument.

Additionally, the regulatory laboratory permits crypto businesses to familiarize themselves with the oversight and regulations implemented by OJK, Hasan stated, reiterating a position from earlier this month.