OJK Takes the Lead in Regulating Digital Financial Assets and Crypto Assets

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Authors

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Following the enactment of Law No. 4 of 2023 concerning the Strengthening and Development of the Financial Sector (“P2SK Law”), regulatory authority over crypto assets has transitioned from the Commodity Futures Trading Supervisory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “Bappebti”) to the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”). This transition is set to take place within 2 years of the P2SK Law’s enactment.

To implement this shift, the Government issued Government Regulation No. 49 of 2024 concerning Transfer of the Duties of Regulation and Supervision of Digital Financial Assets, including Crypto Assets and Financial Derivatives (“GR 49/2024”) which governs the transition process, covering: (i) the offering and trading of digital financial assets, including crypto assets, to the public, as well as the settlement of transactions; and (ii) supporting activities for digital financial assets, including crypto assets. ^[1] The transition to OJK took place on 10 January 2025. ^[2]

To fulfil this mandate, OJK issued OJK Regulation No. 27 of 2024 concerning the Implementation of Digital Financial Asset Trading, including Crypto Assets (“OJK Reg 27/2024”) and OJK Circular Letter No. 20/SEOJK.07/2024 concerning Implementation of Digital Financial Asset Trading, including Crypto Assets (“OJK CL 20/SEOJK.07/2024”), providing the legal framework and technical compliance guidelines for crypto asset trading in Indonesia. Crypto assets are now classified as Financial Sector Technological Innovations (Inovasi Teknologi Sektor Keuangan – “ITSK”) under OJK’s oversight. While some provisions carry over from the previous Bappebti regulation, adjustments were made to reflect the new concept of crypto assets as digital financial assets, rather than just intangible commodities.

In adherence to the deadline for transition as stipulated in P2SK Law and GR 49/2024, both OJK Reg 27/2024 and OJK CL 20/SEOJK.07/2024 took effect on 10 January 2025.

Organizing Parties of Crypto Assets Trading and its Licensing

In line with the former Bappebti regulations, the parties involved in crypto asset trading under OJK’s supervision remain unchanged in terms of roles and functions. However, they are now referred to under updated nomenclatures, as follows: ^[3]

1. Bourse of Digital Financial Assets, including Crypto Assets (Penyelenggara Bursa Aset Keuangan Digital termasuk Aset Kripto) (“Bourse”);
2. Clearing House for Guarantee and Settlement of Trading of Digital Financial Assets including Crypto Assets (Lembaga Kliring Penjaminan dan Penyelesaian Perdagangan Aset Keuangan Digital termasuk Aset Kripto) (“Clearing House”);
3. Custodian for Digital Financial Assets including Crypto Assets (Pengelola Tempat Penyimpanan Aset Keuangan Digital termasuk Aset Kripto) (“Custodian”); and
4. Digital Financial Assets Exchange (Pedagang Aset Keuangan Digital) (“Exchange”).

Each of the above parties is obliged to obtain business licenses in accordance with their business activities from the OJK. ^[4] Specifically for Exchanges, in addition to holding a business license, they must also be designated as ITSK Organizers under OJK. ^[5] Aside from the parties mentioned above, OJK also allows for the possibility of other relevant parties being involved in digital financial asset trading, which would include entities that pass the sandbox provided they participate in digital financial asset trading. ^[6] Accordingly, should there be parties engaging in businesses of providing support to the crypto assets trading, it may be subject to the sandbox process.

Currently, OJK has set up the infrastructure for business license applications through https://sprint.ojk.go.id/ and has provided the relevant guidelines for the process.

Whitelist of Crypto Assets

Similar to the previous Bappebti regulation, OJK also uses a whitelisting approach to determine which crypto assets are permitted for trading, which will be published by the Bourse through their official channels. ^[7] In making this determination, the Bourse must consider the criteria for digital financial assets and crypto assets set out in OJK Reg 27/2024, the precautionary principle, and consumer protection. ^[8]

Exchanges are allowed to submit proposals for adding or removing crypto assets from the whitelist issued by the Bourse. ^[9] Additionally, the Bourse is required to periodically review the list and report its findings to OJK. ^[10] OJK also has the authority to review the list and, at its discretion, prohibit the trading of certain crypto assets. ^[11]

During the period the Bourse has yet to stipulate its list of crypto assets, the list of crypto assets traded in the crypto assets physical market as stipulated by Bappebti (which as of now is the one as stipulated under Bappebti Regulation No. 1 of 2025) shall remain applicable until the issuance of the Bourse’s list, which shall be no later than 10 April 2025. ^[12]

Key Transitional Provisions from Bappebti to OJK

While GR 49/2024 mainly regulates regarding the transitional preparation measures need to be taken by Bappebti and OJK during the period before the effective transition, OJK Reg 27/2024 regulates the transitional provisions applicable after the effective transition on 10 January 2025, as follows:

1. Status of Documents Issued by Bappebti
   • Any licensing, approval, and/or documents related to crypto assets which have been issued by Bappebti prior to 10 January 2025 shall remain valid. ^[13]
   • Any licensing, approval, and/or documents related to crypto assets that are still pending with Bappebti will continue to be handled by OJK under OJK Reg 27/2024. ^[14]
2. Status of Involved Parties in Crypto Assets Trading under Bappebti ^[15]
   • For futures exchange licensed by Bappebti, it shall be considered to have a business license as a Bourse under OJK.
   • For futures clearing house licensed by Bappebti, it shall be considered to have a business license as a Clearing House under OJK.
   • For crypto assets physical trader licensed by Bappebti, it shall be considered to have a business license as an Exchange under OJK.
   • For crypto assets custodian licensed by Bappebti, it shall be considered to have a business license as a Custodian under OJK.
   • For supporting business activities registered with Bappebti, it shall be considered to be registered as a supporting business activity under OJK.
3. Status of On-Going Dispute Resolution by Bappebti
   • Current inspections (pemeriksaan) related to crypto assets under Bappebti prior to the effective transition will be handed over to OJK. ^[16]
   • Dispute resolution and investigation (penyidikan) of digital financial asset cases that were ongoing under Bappebti before the effective transition will continue to be handled by Bappebti. ^[17]
4. Restrictions on Products and/or Activities
   • Parties involved in digital financial asset trading under OJK Regulation are allowed to trade products listed on Bappebti’s whitelist, as well as instruments or activities related to digital financial assets that have not yet been approved. However, for the latter, they must submit an approval application to OJK by 10 February 2025, at the latest. ^[18]
   • A crypto assets physical trader is prohibited from selling new products, except for those that have already been sold by traders whose licenses are still in process with Bappebti. ^[19]
5. Grace Period for Compliance to Mandatory Requirements
   • It is mandatory for parties involved in digital financial assets to fulfil the legal provisions pertaining to governance, personal data protection, and consumer protection at the latest by 10 July 2025; ^[20]
   • Legal provisions on consumer protection under OJK (i.e. OJK Regulation No, 22 of 2023 concerning Consumer and Community Protection in Financial Services Sector) shall be applicable to the aforementioned involved parties since 12 January 2025. ^[21]

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1. Article 2 (1).a j.o. Article 4 of GR 49/2024. ↩︎

2. Article 3 of GR 49/2024. ↩︎

3. Article 2 (1) of OJK Reg 27/2024. ↩︎

4. Article 2 (3) of OJK Reg 27/2024. ↩︎

5. Article 2 (2) of OJK Reg 27/2024. ↩︎

6. Article 2 (1).e of OJK Reg 27/2024. ↩︎

7. Article 9 of OJK Reg 27/2024. ↩︎

8. Article 10 of OJK Reg 27/2024. ↩︎

9. Article 11 of OJK Reg 27/2024. ↩︎

10. Article 13 of OJK Reg 27/2024. ↩︎

11. Article 14 of OJK Reg 27/2024. ↩︎

12. Articles 132 and 137 point a of OJK Reg 27/2024. ↩︎

13. Article 130 (1) of OJK Reg 27/2024. ↩︎

14. Article 130 (2) of OJK Reg 27/2024. ↩︎

15. Article 134 (1) of OJK Reg 27/2024. ↩︎

16. Article 135 of OJK Reg 27/2024. ↩︎

17. Article 138 of OJK Reg 27/2024. ↩︎

18. Article 131 of OJK Reg 27/2024. ↩︎

19. Article 133 of OJK Reg 27/2024. ↩︎

20. Article 139 (1) of OJK Reg 27/2024. ↩︎

21. Article 139 (1) of OJK Reg 27/2024. ↩︎

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Go to

1. Organizing Parties of Crypto Assets Trading and its Licensing
2. Whitelist of Crypto Assets
3. Key Transitional Provisions from Bappebti to OJK

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