The Indonesian government wants to transfer cryptocurrency regulation to the Asian country’s financial watchdog to further protect investors. The move is part of a bigger regulatory overhaul in the sector to improve oversight of the rapidly expanding digital asset market.
To strengthen cryptocurrency laws, Indonesia is exploring new financial legislation. The Indonesian Financial Services Authority (OJK) will regulate, monitor, and control crypto investments, which have been expanding in the country. Currently, market supervision is shared between the Ministry of Trade and the Commodity Futures Trading Commission.
The revision was proposed by Finance Minister Sri Mulyani Indrawati as part of new financial legislation that is now being debated in parliament. When news spread that Southeast Asia’s largest economy was intending to tighten regulation of cryptocurrency exchanges, MPs submitted a draught bill to the government in September.
Indonesia plans to tighten oversight of crypto market, task OJK with regulation https://t.co/S5C8oECyUk pic.twitter.com/gMxWblomFA
— Reuters (@Reuters) November 10, 2022
While crypto payments are not authorised in Indonesia, commodity investments are. According to Sri Mulyani, almost 15 million cryptocurrency investors have entered the country since June, up from just 4 million two years ago. There were only 9.1 million stock market investors in 2020.
During the discussion, the minister also said that the bitcoin market has recently faced turbulence, which was organised to allow the executive authority to make its initial reply and suggest revisions to the legislative plan. The measure will be signed into law when the administration and the legislature agree on its provisions.
The Indonesian parliament also wants to widen the scope of the Bank of Indonesia to include price stability and economic growth. Sri Mulyani praised the initiative but emphasised the need to maintain financial authorities’ independence, notably the central bank’s.