- The Indonesian government’s delay in crypto regulation transition is due to the lack of supporting government regulation.
- The delay in the transition could impact the crypto market’s growth and stability until new regulation is enforced.
- OJK and Bappebti are ready for the transition, but Bappebti’s rules remain until the new regulation is implemented.
The Indonesian government’s proposed handover of crypto asset regulation from Bappebti to OJK is being delayed. The transition, stipulated by the Financial Sector Law, was supposed to be made by January 12, 2025. Nonetheless, the process still faces stagnation because there is no accompanying government regulation to support it.
According to a recent report, OJK Chairman Mahendra Siregar himself admitted the delay and said that the discussions are still conducting. The draft government regulation has been developed but cannot be enforced unless sanctioned by the government. This regulation is necessary in order to lay legal groundwork for the transition to greener pastures.
Crypto Regulation Transition Delayed
In Jakarta at the 2025 stock market opening ceremony, Siregar said that OJK is still in coordination with the Trade Ministry to ensure a non-issue handover. He said that once the regulation is issued it will be a legal framework for the transition and will push the process.
The delay has angered many experts in the field of digital economy and the industry players as well. Nailul Huda, a well-known expert, said that it is progressing at a snail’s pace, and that the Trade Ministry might be reluctant to surrender supervisory duties. He highlighted this message especially because, Indonesia’s crypto industry is relatively young and rapidly growing.
While OJK may impose higher regulatory measures Huda also pointed out that the authority’s experience will be advantageous to the investors in the long run. He said that better and more certain rules are likely to enhance the confidence and stability of players in the market.
OJK Prepares for Shift
Market participants such as the cryptocurrency brokers and exchanges have been expecting this change in regulation. They are seeking better guidance to the changing environment and that can only come from the legal fraternity. Speaking at the launch of the new operation, Ibrahim Assuaibi, Director at Laba Forexindo Berjangka, explained that it would help reduce overlapping supervision. This would also allow direct transactions under the supervision of OJK and Bank Indonesia.
Immanuel Giras Pasopati, the Chief Marketing Officer of crypto exchange company Bittime also agreed on the shift and applauded OJK’s consultation. Triv CEO Gabriel Rey supported the change saying that OJK’s regulation would mean that the Indonesian regulation would continue in the same way as the Bappebti regulation, and thus reduce uncertainty in the market.
OJK and Bappebti has indicated their preparedness to take over the operations from the current regulator. The OJK as the regulator has done its homework in consulting global best practices in regulating cryptocurrencies, according to Hasan Fawzi, Commissioner at the OJK. The OJK is also gearing up the human capital to be ready to take on the new position. However, Bappebti Head Kasan said that the previous rule will still be implemented until there is a new regulation.
