OJK Issues New Regulations to Supervise Fintech and Crypto Players

Business Jakarta

JAKARTA, JAKTIMES.COM – The Financial Services Authority (OJK) has recently issued Regulation No. 3 of 2024 (POJK 3/2024) concerning the Implementation of Financial Technology Sector Innovation (ITSK), which includes several key articles, namely Regulatory Sandbox and digital financial assets.

This regulation is made based on the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (Law P2SK). Through POJK 3/2024, the government seeks to create an integrated fintech ecosystem with an activity-based approach. The aim is to support innovation that ensures consumer protection and risk mitigation.

Several key articles of POJK /2024 include refinements to the Regulatory Sandbox mechanism or facilities for testing and developing financial technology innovations. These refinements include several aspects, such as the addition of eligibility criteria, testing requirements, and exit policies.

Article 50 Paragraph 1 stipulates that digital financial innovation providers who are in the application process and participants who are still in the implementation of the Regulatory Sandbox as regulated in POJK 13/2018 concerning Digital Financial Innovation are given the following status:

Recommended with the obligation to register or obtain a license from the OJK. Recommended without the obligation to register or obtain a license from the OJK. Not recommended, no later than six months after the enactment of POJK 3/2024.

Furthermore, digital financial assets are also regulated in Article 2 of POJK 3/2024 as also regulated in Article 6 of Law P2SK. The scope of ITSK regulated in Article 2 includes:

Securities transaction settlement. Capital raising. Investment management. Risk management. Funds raising and/or distribution. Market support. Activities related to digital financial assets, including crypto assets.

“POJK 3/2024 also stipulates the obligation to obtain a permit status for providers, enhance coordination among supervisors in regulation and supervision, as well as increase financial literacy and consumer protection,” as stated in OJK’s official statement some time ago as quoted by Jaktimes.com from Dailysocial.id.

As known, the transition of crypto asset supervision from Bappebti to OJK is given a transitional period of 2 years. Meanwhile, Government Regulation (PP) to oversee this transition will be drafted within the next 6 months with reference to several steps, including transfer mechanisms.

OJK Prohibits Local Wealthtech Platforms from Promoting Foreign Stock Investment Products

Overall, the Indonesian Fintech Association (AFTECH) notes that there are 336 registered fintech companies in Indonesia. Meanwhile, Bappebti notes that there are 33 Registered Physical Crypto Asset Traders (CPFAK) that are registered and regulated (DS/JT)

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