Regulatory Implications of OJK’s Oversight on Digital Financial Assets Including Crypto Assets in Indonesia

18 March 2025

In recent years, Indonesia has witnessed a significant surge in the adoption and trading of digital financial assets and crypto assets. Based on data from the Commodity Futures Trading Regulatory Agency of the Ministry of Trade (“Bappebti”) has reported significant growth in crypto asset transactions, with the number of crypto asset users reaching 21.27 million from February 2021 to September 2024. Citing from the Head of Bappebti statement in October 2024, crypto asset trading has become a popular investment choice among the public in Indonesia. Meanwhile, the total transaction value of crypto assets during the same period reached IDR 426.69 trillion, marking a 351.97% annual increase from IDR 94.41 trillion. As a result of this growth, state revenue from crypto transaction taxes amounted to IDR 914.2 billion from 2022 to September 2024.[1] The 2024 Indonesia Crypto & WEB3 Industry Report states that as of June 2024, there have been 2,251 companies registered under blockchain business line in the Online Single Submission system, the government licensing platform.[2]

To demonstrate its commitment to the digital asset sector, the government via Indonesia’s Financial Services Authority or Otoritas Jasa Keuangan (“OJK”), has taken a significant step by officially enacting OJK Regulation No. 27 of 2024 on the Implementation of Digital Financial Assets, including Crypto Assets (“DFA”), effective 10 January 2025 (“POJK 27/2024”). This regulation requires all businesses related to the trading of DFA (including crypto assets) to adhere to the new framework set by OJK.

Initially, crypto assets in Indonesia were regulated by Bappebti, classifying them as commodities rather than financial instruments. At this state of time, crypto assets have now become more integrated into financial services—such as payments, investments, and lending, regulating them purely as commodities is no longer sufficient. OJK’s involvement signals a broader recognition of crypto’s potential impact on the financial system, including risks related to market stability, investor protection, and financial crimes like money laundering. This move aligns with global regulatory trends, where many countries are working toward stricter oversight of digital assets to prevent financial instability.

Regulatory Transition: Indonesia On Digital Financial Assets

A Shifting Foundation

This authority transition from Bappebti to OJK is outlined in Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“UU P2SK”), which designates OJK as the primary regulatory body overseeing these assets. Previously, crypto assets were regulated under Bappebti Regulation No. 8 of 2021 on Guidelines for the Implementation of Physical Crypto Asset Trading on the Futures Exchange, as last amended by Bappebti Regulation No. 8 of 2024 (“Bappebti 8/2024”).

Regulatory Approaches: Bappebti v. OJK Approach

In general, POJK 27/2024 adopts a stricter regulatory approach to the governance and implementation of DFA trading. Compared to previous Bappebti regulations, this new framework introduces several key provisions to enhance oversight and market integrity. These include the establishment of a Crypto Asset List by the Exchange, the implementation of good governance principles for DFA Trading Operators (“DFA Operators”), strengthened consumer protection measures, mechanisms to prevent market abuse, and regulations on personal data protection. The following are some of the new key terms introduced in POJK 27/2024, which were not available under the previous Bappebti 8/2024:

Digital Financial Assets (DFA) define as digitally represented financial assets, including crypto assets. Criteria of DFA that can be traded in the DFA Market:

must be issued, stored, transferred, and/or traded using distributed ledger technology;
must not be financial assets recorded electronically by financial service institutions;
must not originate from or be used in activities that violate applicable laws and regulations;
must meet any other criteria set by OJK.

Crypto Asset List. The Exchange determines the Crypto Asset List, and DFA Operators are prohibited from trading any crypto assets that are not included in the Crypto Asset List.

POJK 27/2024 enforces a stricter regulatory approach by prohibiting DFA Operators from trading crypto assets outside the Crypto Asset List, now determined by the Exchange instead of Bappebti (or in the current case, OJK). This shift enhances market oversight, ensuring only compliant and secure assets are traded, reducing risks of fraud and manipulation. Industry players must closely monitor updates to the Crypto Asset List, as changes could impact trading strategies and investment opportunities. The stricter stance is further reinforced by the imposition of administrative sanctions for violations of this provision, which range from a written warning to revocation of business licenses.

Source of Capital – Loan. POJK 27/2024 specifically prohibits the industry players (DFA Operators) from using loans as the source of capital.

Good Governance Principles for DFA Operators should be reflected at a minimum in certain aspects (as further described below).

Anti-Money Laundering, Counter-Terrorism Financing, and Anti Weapons of Mass Destruction Proliferation Rules. POJK 27/2024 introduces stricter regulations to prevent money laundering, terrorism financing, and the proliferation of weapons of mass destruction. One key requirement is that DFA Traders must establish a cooperation agreement with the relevant ministry to obtain access rights and utilize population data based on identity numbers. If such an agreement has not been established, OJK has the authority to impose certain restrictions on Traders.

Consumer Protection & Personal Data Protection. It is noted thatDFA Operators must ensure data integrity, confidentiality, and security from collection to destruction. Third-party data sharing requires consumer consent and must comply with data protection laws. Further, DFA Operators must also provide clear, accurate, and non-misleading information on products, risks, and issuer details. Marketing must be transparent and avoid false promises of high returns or encouraging debt for DFA purchases.

OJK’s New Function and Authority

POJK 27/2024 establishes new roles and strengthens OJK’s authority in overseeing Indonesia’s DFA market. Under this regulation, OJK is responsible for supervising and monitoring DFA Operators, granting licenses, approving structural changes and partnerships, and imposing restrictions on business activities. In cases of non-compliance, OJK also has the power to suspend operations and revoke licenses, ensuring stricter oversight of market participants.

Beyond licensing and supervision, OJK has the authority to evaluate DFA traded in the market. Based on its evaluation result, OJK can prohibit its trading and order its removal. This evaluation process also applies to the Crypto Asset List, where OJK can instruct Exchanges to halt the trading of specific assets if necessary.

To effectively carry out its supervisory role, OJK employs both direct and indirect oversight mechanisms. Through direct supervision, OJK can request data, documents, and other relevant information from DFA Operators and supporting service providers. Meanwhile, indirect supervision is conducted through research, analysis, evaluations, and mandatory reports submitted by market participants. These reporting requirements serve as the foundation for OJK’s ongoing monitoring efforts, ensuring that DFA Operators remain compliant with regulatory standards.

In addition to supervision and enforcement, POJK 27/2024 provides a framework for inter-agency coordination, allowing OJK to collaborate with ministries, government agencies, and other relevant stakeholders. This coordination is essential for harmonizing regulations, enhancing market development, and ensuring that DFA trading aligns with broader financial sector policies in Indonesia.

Indonesia Market Structure: Will OJK’s Regulatory Approach to DFA Mirror the Traditional Financial Industry?

The DFA ecosystem under the OJK regime consists of various key players, including Exchanges, Clearing Institutions, Traders, Custodians, and other supporting service providers. The Exchange will be responsible for providing the system and facilitating Traders in conducting transactions within the DFA market. Currently, Indonesia’s only official crypto asset Exchange is PT Bursa Komoditi Nusantara (Commodity Future Exchange or CFX), licensed by Bappebti in 2023.[3] POJK 27/2024 defines licensed Traders (Pedagang) as “Members of the Digital Financial Asset Exchange” (Bursa) [4], placing them under the oversight of the Exchange. Additionally, OJK has granted the Exchange authority to determine the Crypto Asset List and approve the trading guidelines and procedures of each Trader, reinforcing its centralized role in regulating and supervising DFA transactions. This framework suggests a market model similar to that of traditional financial exchanges, where all trading activities must comply with exchange-approved standards. However, this raises questions about the extent of control the Exchange will have over market participants. Will the DFA Exchange assume a role and responsibilities similar to the Indonesia Stock Exchange (IDX), effectively positioning CFX as the National DFA Exchange? If so, this would mark a fundamental shift in Indonesia’s approach to DFA regulation, bringing it closer to the structure of traditional financial markets. The establishment of a state-backed Exchange further reinforces this direction, signaling a move to consolidate crypto trading under a single, regulated entity.

Extending beyond mere Exchange considerations, OJK’s strategy for DFA industry players signifies a comprehensive endeavor to harmonize the sector with the highly regulated traditional financial sector by imposing stricter governance, capital requirements, and compliance obligations. POJK 27/2024 mandates that all key entities in the DFA market, including the Exchange, Clearing Institutions, Traders, and Custodians, meet stringent capitalization requirements to ensure financial stability. For instance, to operate as a Trader, a company must have a minimum paid-up capital of 100 billion Rupiah and is required to maintain a certain level of equity.

Additionally, controlling shareholders, board members, and commissioners must pass a Fit and Proper Test (FPT) to ensure qualified leadership and sound decision-making. Good Corporate Governance (GCG) principles should be shown via commitment from shareholders, execution of duties and responsibilities by the Board of Directors and Board of Commissioners, internal control mechanisms, avoidance of conflicts of interest, and a business plan that aligns with the risk profile, size, and complexity of the DFA Operators. Furthermore, OJK implements stringent compliance and risk management measures, requiring the establishment of internal audit functions and risk management policies. DFA Operators must also implement Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and anti-proliferation of weapons of mass destruction policies in line with financial sector regulations. To maintain ongoing supervision, OJK has also introduced regular reporting obligations, requiring industry players to submit periodic reports to ensure transparency and regulatory compliance.

OJK’s approach makes it clear that the DFA market will be regulated similarly to the traditional financial market, with centralized control and supervision by OJK and the government. This strategy aims to enhance oversight, strengthen market integrity, and protect investors from the volatility and risks associated with DFA.

Impact on Industry Players

The Crypto Assets List set by Bappebti will remain in effect until the Exchange establishes the Crypto Assets List under the new OJK regime. POJK 27/2024 also mandates that the Exchange must finalize the Crypto Assets List no later than three (3) months from the enactment of this POJK. Several industry players are directly affected by this regulatory framework, including:

Exchanges that facilitate the trading of crypto assets;
Clearing Institutions that handle crypto asset trading;
Crypto Asset Custodian; and
Physical Crypto Asset Traders.

These entities, upon receiving the necessary licenses, approvals, registrations, or other determinations from Bappebti, will be recognized as having obtained a business license as DFA Operators from the OJK. Additionally, activities such as staking, which have already been licensed or approved by Bappebti, will maintain their validity under OJK's oversight.

DFA Operators must also comply with governance, personal data protection, and consumer protection standards as outlined in the POJK 27/2024, within six (6) months of the regulation's implementation.

Beyond products that are required to be registered in the Crypto Asset List traded in the physical crypto market, other instruments and activities related to DFA that have not yet been licensed or approved may continue to be traded or executed in accordance with the POJK 27/24. However, DFA Operators must submit approval requests for these products, instruments, or activities to the OJK within one (1) month of the POJK 27/24’s enactment. Failure to do so within the required timeframe will necessitate the cessation of the trading or execution of the products or activities concerned.

Should you have any inquiries related to this regulation or wish to ascertain its impact on your business or personal interests, please feel free to contact us. 

[1] Ministry of Trade of the Republic of Indonesia. 2024. “Bappebti: Jumlah Pelanggan Aset Kripto di Indonesia Tembus 21,27 Juta.” Ministry of Trade website, 28 October 2024. https://www.kemendag.go.id/berita/pojok-media/bappebti-jumlah-pelanggan-aset-kripto-di-indonesia-tembus-2127-juta#:~:text=00%20WIB%205439-,Badan%20Pengawas%20Perdagangan%20Berjangka%20Komoditi%20(Bappebti)%20Kementerian%20Perdagangan%20menyampaikan%20perkembangan,kripto%20tentunya%20akan%20mengoptimalkan%20penerimaan.

[2] Asosiasi Blockchain Indonesia, Asosiasi Pedagang Aset Kripto Indonesia, Coinvestasi, and Indonesia Crypto Network. 2024. Indonesia Crypto & Web3 Industry Report. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://asosiasiblockchain.co.id/2024_Indonesia%20Crypto_&_Web3_Industry_Report.pdf.

[3] Ministry of Trade of the Republic of Indonesia. 2023. “Sah! Bursa Kripto Resmi Berdiri, Berikut Daftar Calon Pedagang yang Sudah Terdaftar.” Ministry of Trade website, 28 Juli 2023. https://www.kemendag.go.id/berita/pojok-media/sah-bursa-kripto-resmi-berdiri-berikut-daftar-calon-pedagang-yang-sudah-terdaftar.

[4] As of the time of writing, Pluang and Tokocrypto are among the sixteen Traders listed as member partners of CFX. CFX Website: https://www.cfx.co.id/id/.