°ÄÃÅÁùºÏ²ÊÂÛ̳

The Indonesian Financial Services Authority (OJK) has introduced new legislation aimed at regulating the country’s rapidly growing digital asset market, including cryptocurrencies.

Officially titled the "Implementation of Digital Financial Asset Trading Including Crypto Assets", the new secondary legislation will become an actionable compliance requirement for crypto players in the country from January 10, 2025. 

It is intended to professionalise the industry by setting a new standard for licensing, operational security and compliance in the sector.

Under the new rules, all digital asset providers must obtain a business licence from the OJK before operating. 

This requirement applies to exchanges, clearing and settlement institutions, storage service managers and traders. 

Eligible digital assets must utilise distributed ledger technology, ensure transparency and avoid enabling illegal activities, and crypto exchanges are responsible for evaluating assets and listing only those that meet these criteria.

The regulation also mandates the creation of secure and reliable systems for trading, clearing and storage, with crypto providers required to implement stringent risk management practices and prioritise consumer protection. 

As in jurisdictions such as the EU, crypto players will need to adhere to cybersecurity and anti-money laundering (AML) laws. 

They must meet reporting obligations, including via real-time monitoring systems that integrate with the OJK and other relevant institutions, as well as regular evaluations and quarterly reports on listed digital assets.

A transition period allows oversight of digital financial assets to shift into the OJK’s oversight, with completion required within 24 months under Law No. 4 of 2023. 

Providers must comply with the OJK’s licensing and operational standards within this timeframe, and business plans must be submitted within 15 working days of receiving OJK directives, with updates limited to once per year unless otherwise permitted. 

Providers found non-compliant during audits must resolve issues within three months.

Penalties for violations are severe, with fines of up to IDR2m ($123) per day for administrative breaches and the potential for licence suspension or revocation for more serious non-compliance offences.