Heaptalk, Jakarta — Indonesia’s Financial Services Authority (OJK) has officially issued Financial Services Authority Regulations (POJK) Number 3 2024 concerning the Implementation of Financial Sector Technology Innovation (ITSK) to oversee the fintech and crypto industry.
This regulation follows up on Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK). POJK 3/2024 is expected to establish an integrated fintech ecosystem with an activity-based approach to support innovation while ensuring consumer protection and effective risk mitigation.
A critical aspect of the OJK regulation is the completion of the Regulatory Sandbox as a facility for testing and developing innovative financial technology. This improvement ensures that innovation and technological development are carried out responsibly, with adequate risk management and prioritizing market integrity and consumer protection.
In the Regulatory Sandbox mechanism perfection, this regulation includes several aspects, such as adding eligibility criteria, testing requirements, and exit policies. OJK has regulated digital financial assets in Article 2 POJK 3/2024, as also regulated in Article 6 of the P2SK Law, which consists of several scopes:
- Settlement of securities transactions
- Capital raising
- Investment management
- Risk management
- Collection or distribution of funds
- Market support
- Activities related to digital financial assets, including crypto assets
“The Regulatory Sandbox offers multiple advantages for the crypto asset industry in Indonesia, such as the ability to develop new products and services in the crypto asset sector safely and scalably. This policy also facilitates experimentation and testing of new technologies in the crypto asset industry,” Deputy General Chairperson of the Indonesian Crypto Asset Traders Association (Aspakrindo), Yudhono Rawis, said.
In his further statement, Yudho said that the OJK Regulatory Sandbox allows trial trading of crypto assets with other underlying assets, such as gold and other commodities in Indonesia. On the other hand, crypto asset trading platforms integrated with traditional financial systems are part of this policy scheme to encourage innovation and growth in the crypto asset industry.
However, he observed that POJK 3/2024 is a proactive step by the OJK in preparing a crypto supervision program in January 2025, when the transition period process from the Commodity Futures Trading Supervisory Agency has been completely accomplished.
“Even though this regulation still needs to provide the details regarding crypto assets, this effort is a strategic step by the OJK in creating a foundation for managing crypto’s progress in the financial sector. This regulation can provide legal certainty for crypto industry players and encourage the industry’s growth responsibly and sustainably.” Yudho concluded.
