Indonesian authorities will initiate a regulatory sandbox that will also include crypto and digital assets, a landmark move for the crypto regulatory landscape in the country.
Crypto and digital assets in Indonesia will soon undergo a regulatory sandbox. The outcomes of the sandbox could also substantially impact the country’s crypto regulatory scenario. The Indonesian Financial Services Authority (OJK), which implemented the sandbox, has included all financial products under it. Regulators could now monitor crypto firms in the sandbox before giving them the green signal.
On the other hand, the regulatory sandbox will enable testing of innovative products and services. A local daily reported on the event and noted how a senior official said it would benefit the crypto sector. The report quoted Hasan Fawzi, a senior official heading a regulatory agency in Indonesia.
He said, “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.”
While Bappebti, the commodities regulatory agency, monitors crypto assets, the OJK will take over this responsibility in January 2025. This means that crypto and digital assets will be on par with financial instruments. They are treated as commodities currently.
The crypto regulatory landscape in Indonesia has undergone many changes in recent months. A few days ago, Bappebti announced a change in crypto taxes due to growing adoption. Meanwhile, in 2023, authorities launched a public crypto exchange to aid in crypto trading and build the digital asset ecosystem.
Moreover, the growing global crypto market cap may have also impacted regulators worldwide. As more investors join the crypto market and new blockchain projects emerge, the need for transparent regulation will rise.
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