Indonesia’s Financial Services Authority (OJK) will soon be granted the power to oversee cryptocurrency markets and regulate cryptocurrency investments.
The local Trade Ministry now regulates the digital asset business in cooperation with the Commodity Futures Trading Regulatory Agency. Sri Mulyani Indrawati, However, according to finance minister Sri Mulyani Indrawati, the responsibility of safeguarding consumer interests would be given to the OJK.
The most recent events in the industry, which includes the collapse of the world’s largest crypto exchange FTX, had a hand in Indonesia’s plans. Following Terra’s crash in May, the incident led to yet another disaster, wiping out billions of dollars from the economy.
Several sources indicated Indrawati’s latest proposal is part of the more comprehensive legislation that was filed to the government earlier this year. The bill is currently being reviewed in the national parliament.
According to Indrawati, the country must impose strict laws to protect all of its finance industry tech innovation, particularly crypto assets.
Indonesia has not yet accepted cryptocurrencies as legal tender, although it does permit their usage inside the commodity market as an investment.
When presenting the new proposal to parliament, Indrawati remarked that there are more virtual currency investors in Indonesia than there are equity market investors.
About 15.1 million investors were reported to be involved in digital assets as of June, as opposed to 9.1 million investors in the conventional stock market. Indonesia only has four million cryptocurrency investors in 2020, indicating a significant growth over the previous two years.
