World Crypto Global
- Written by: Tareq Sikder
- Thu, 28 Mar 2024
- Israel
To reshape the landscape of the cryptocurrency industry inIndonesia, the Financial Services Authority (OJK) has announced that cryptofirms will be subject to evaluation in a regulatory sandbox before they canobtain licenses to operate. This development comes as part of the transition ofregulatory oversight from the commodities and futures trading regulator,Bappebti, to OJK, scheduled to take place in January 2025.New Measure to Enhance Crypto Sector SecurityUnder the new regulatory framework, firms offering cryptoservices in Indonesia will be required to undergo evaluation within theregulatory sandbox. Failure to comply with this prerequisite will result insuch firms being deemed to operate illegally within the country.A regulatory sandbox functions as a controlled environmentwhere innovative financial products and services can be tested to ensure theirsafety and reliability. It provides a platform for trial runs, allowingregulators to assess the potential risks and benefits associated with newofferings, thereby enhancing security and responsible management within thefinancial sector.Indonesian regulator @ojkindonesia says crypto products will have to be evaluated in a sandbox environment before being licensed once it takes over supervision in January 2025, @Shoennax reports.https://t.co/jGCLiLGAYT CoinDesk (@CoinDesk) March 28, 2024Crypto Assets Set to Move from Commodities to Financial InstrumentsThe impending shift of regulatory supervision from Bappebtito OJK marks a significant transition for the crypto industry in Indonesia.Currently classified as commodities, crypto assets fall under the purview ofBappebti. However, with OJK taking over supervision, it is anticipated thatcrypto assets will be reclassified as financial instruments.Indonesia's Financial Services Authority to Regulate Crypto Industry in 2025 with Evaluation in Regulatory SandboxIndonesia's Financial Services Authority (OJK) will take over regulation of the crypto industry from the commodities agency Bappebti. Crypto firms must undergo DexBot (@dexbot) March 28, 2024"This aligns with our spirit at OJK, particularly inconsumer protection and education," Hasan Fawzi, the regulator's Head ofSupervision for financial technology, digital financial assets and crypto, saidat a media briefing. "We expect our regulatory mechanisms to directlyimpact the prevention of fraudulent investments."This article was written by Tareq Sikder at www.financemagnates.com.
