Indonesia’s Bappebti has officially handed over regulatory and supervisory responsibilities for digital financial assets, including cryptocurrencies and financial derivatives, to the Financial Services Authority (OJK) and Bank Indonesia (BI).

This move aims to provide greater legal certainty and stability within the country’s evolving digital finance sector.

The transfer, mandated by Law No. 4 of 2023 and Government Regulation No. 49 of 2024, will see the OJK oversee crypto assets and capital market derivatives.

Meanwhile, BI will supervise derivatives related to the money and foreign exchange markets. This transition will be fully completed within 24 months.

To ensure a smooth handover, Bappebti, the Commodity Futures Trading Supervisory Agency under the Ministry of Trade, has been coordinating with OJK and BI on regulatory frameworks, supervisory infrastructure, and public awareness initiatives.

OJK has already issued regulations outlining its approach to crypto asset trading.

This shift in oversight reflects the growing importance of digital financial assets in Indonesia.

Data from January to November 2024 shows significant growth in the value of commodity futures trading and crypto asset transactions.

The transfer is expected to strengthen the financial system, enhance consumer protection, and foster further development of the Indonesian financial market.

Existing licenses for derivative players will remain valid, and current reporting procedures will continue until new systems are introduced.

Bank Indonesia, while new to overseeing derivatives, sees this as an opportunity to expand its financial instruments and contribute to market deepening.

Featured image credit: Edited from Freepik

The article first appeared on Fintech News Singapore