Jakarta. The Financial Services Authority (OJK) has issued a new regulation formalizing its forthcoming role as the supervisory authority over crypto assets in Indonesia, a role currently held by the Trade Ministry’s Commodity Futures Trading Supervisory Agency (Bappebti).

OJK Regulation No. 27/2024 aims to prepare for the transition of crypto asset oversight from Bappebti, ensuring readiness for this significant shift. However, a superior government regulation to facilitate the transition has not yet been issued. Typically, such regulations are based on existing government laws or directives.

Ismail Riyadi, OJK’s acting head of the financial literacy, inclusion, and communication department, said the new regulation is grounded in Law No. 4/2023 on the development and empowerment of the financial sector. This law grants the OJK authority to regulate and oversee the use of information technology in the financial sector, which includes crypto assets.

“To manage the transition of crypto asset oversight from Bappebti, OJK has outlined three phases. The first is the soft landing strategy during the initial transition phase, followed by the strengthening phase, and finally, the development phase,” Ismail said in a recent statement.

The new regulation seeks to adopt existing Bappebti regulations while incorporating enhancements to align with best practices in the financial sector. It emphasizes the transparent, efficient, and orderly trade of financial assets.

Ismail explained that the regulation is designed to bolster risk management, market integrity, cybersecurity, and anti-money laundering measures, thereby improving consumer protection within the sector.

“The OJK regulation mandates digital financial asset traders to acquire government permits and submit regular and incidental reports,” Ismail added.

The regulation will take effect on January 10, 2025.

In a separate statement, Bappebti Secretary Olvy Andrianita confirmed that the agency will collaborate with the OJK and the central bank to establish a transition team to oversee the handover of responsibilities.