Key takeaways:
- Local financial services providers must be part of the regulatory sandbox or allow space for testing future innovations, such as crypto asset products.
- Regulatory sandboxes are often instruments companies use to test and try out novel, cutting-edge goods or services for a brief time.
Local financial services providers must be part of the regulatory sandbox or allow space for testing future innovations, such as crypto asset products, according to the Indonesian Financial Services Authority (OJK).
Cryptocurrency assets would eventually need to pass through a regulatory sandbox after being controlled and overseen, according to a report by the local Indonesian media outlet DetikFinance.
This implies that before being given permission to operate in the nation, cryptocurrency companies in the sandbox stage will need to undergo evaluation by the authority.
Regulatory sandboxes are often instruments companies use to test and try out novel, cutting-edge goods or services for a brief time.
According to Hasan Fawzi, who oversees the nation’s technology innovation in the financial sector, digital financial assets, and cryptocurrency assets, the inclusion of cryptocurrency assets in the regulatory sandbox is part of an effort to combat fraudulent investments.
“I think this is our spirit at OJK, especially in consumer protection and education. We really hope that all of our regulatory mechanisms will be present and have a direct impact on preventing fraudulent investments.”
As part of this declaration, the crypto business will be regulated by the OJK beginning in January 2025. The nation’s commodities agency, or Bappebti, controls it.
Although cryptocurrency assets are classified as commodities in Indonesia, they are anticipated to be reevaluated as financial instruments once they are under OJK’s authority.
With a pro-crypto candidate winning the vice president position in the most recent presidential elections, the crypto scene in Indonesia has been heating up over the past year.
To support local youngsters in the digital sphere, Gibran Rakabuming Raka pledged during his election campaign to assemble blockchain, cryptocurrency, artificial intelligence (AI), and cybersecurity specialists.
The Indonesian Crypto Asset Futures Exchange, regulated locally, was the nation’s first national cryptocurrency exchange when it opened for business in 2023.
It functions as the only platform in the nation for the authorized trade of digital assets. Additionally, it has started running blockchain experiments for public services.
Indonesian officials allegedly considered reviewing the nation’s existing 0.1% capital gains tax and 0.11% value-added tax (VAT) on cryptocurrency transactions earlier in March.
