Jakarta. Indonesia’s crypto asset transactions fell sharply this year as the market cooled from the post-Bitcoin halving rally, but the Financial Services Authority (OJK) said the decline reflects a normal market correction rather than weakening industry fundamentals.

OJK’s Chief Executive for Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets, Adi Budiarso, said the slowdown was largely driven by a high base effect following the surge in crypto trading after Bitcoin’s halving event in April 2024.

“This is clearly a high base effect, not a sign of weakening fundamentals, and it is also in line with global market conditions,” Adi said during a press conference in Jakarta on Tuesday.

OJK data showed crypto asset transactions in Indonesia reached Rp 482.23 trillion ($27.8 billion) in 2025, down 25.9% from Rp 650.61 trillion recorded in 2024. Monthly transactions in March 2026 also fell 8.51% to Rp 22.24 trillion.

Adi said the correction mirrored the decline in global crypto market capitalization, which dropped around 45% from its all-time high of $4.2 trillion in October 2025 to about $2.3 trillion in March 2026.

He added that several global factors also weighed on sentiment, including prolonged high US interest rates, the US-China trade war, tensions in the Middle East, and security incidents involving decentralized finance (DeFi) platforms.

Despite the downturn, OJK said institutional appetite for crypto assets remains relatively strong, particularly for long-term investment strategies.

“Market consolidation phases are often seen through a dual-focus perspective. For some investors, this presents an attractive entry point, while others still prefer to take a cautious wait-and-see approach,” Adi said.

OJK said Indonesia remains open to institutional participation in digital financial assets and crypto markets, both as consumers and as shareholders in digital asset trading firms.

To strengthen market security, the regulator has implemented measures including know your customer (KYC), know your transaction (KYT), customer due diligence (CDD), and enhanced due diligence (EDD).

Indonesia’s crypto ecosystem infrastructure has also become more robust through the implementation of segregated functions, which separate the management of fiat funds and crypto assets between licensed custodians and clearing institutions supervised by OJK.

The regulator also maintains a whitelist system that limits which crypto assets can be legally traded in Indonesia.

“To date, around 1,450 crypto assets have been included in the whitelist out of millions of global tokens as part of our market curation and protection efforts,” Adi said.

Meanwhile, OJK is preparing new regulations on the tokenization of real-world assets (RWA). The regulator said three RWA tokenization business models have already passed validation in OJK’s regulatory sandbox.

As a follow-up, OJK is drafting a regulation on tokenized asset offerings and real-world asset tokenization, which is expected to be issued soon.

“OJK hopes crypto assets will not only serve as an alternative investment instrument, but also synergize with other financial products such as pension funds to create a greater impact on national economic growth,” Adi said.