Crypto

Indonesia Plans To Strengthen Crypto Market Oversight, Tasks OJK To Regulate

JAKARTA, Nov 10 (Reuters) – Indonesia plans to transfer regulation, supervision and monitoring of cryptocurrency investments to the Financial Services Authority (OJK) to better protect investors, its chief executive said on Thursday. Minister of Finances.

Currently, the Department of Commerce and the Commodity Futures Trading Regulatory Agency jointly oversee cryptocurrency in Southeast Asia’s largest economy, where there has been a boom in such investments.

The new plan, presented by Finance Minister Sri Mulyani Indrawati, is part of the financial sector legislation being debated in parliament.

Using cryptocurrency assets as payment is illegal in Indonesia, but investment transactions are allowed in the commodity market.

Sri Mulyani said that in June there were 15.1 million cryptocurrency investors in the country, an exponential increase from just 4 million in 2020. This compared to the 9.1 million investors on the stock market in June.

“We need to put in place a fairly robust and reliable investor protection and supervision mechanism, especially for high-risk investment instruments,” she told a parliamentary hearing, noting that the market cryptocurrencies has recently experienced turbulence.

The new bill would empower the OJK to regulate and supervise “digital asset activities, including crypto assets and technological innovation of the financial sector,” Sri Mulyani added.

Parliament officially submitted the bill to the government in September. Thursday’s meeting was to present the government’s first response and any additions to the proposed bill.

The bill will be enacted once the legislative and executive branches agree on all the provisions.

Parliament’s proposals also contain provisions to expand the central bank’s mandate to include economic growth in addition to price stability.

Sri Mulyani said she supported the proposal but also stressed the importance of the independence of financial regulators, especially that of BI.

“It is important for us to continue to provide signals that the independence and credibility of institutions (…) are strengthened and maintained because it is the most important asset to maintain the stability of the financial system”, she said.

Reporting by Gayatri Suroyo

Our standards: The Thomson Reuters Trust Principles.

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