The digital financial sector, including crypto, is considered to be very high risk. This is because there are no clear rules. Therefore, the Government and the DPR agreed to regulate digital financial assets, including crypto assets in the Draft Law on the Development and Strengthening of the Financial Sector (P2SK).
In an explanation of the P2SK draft law, the government and the DPR revealed that Indonesia’s financial sector faces challenges from the emergence of complex and high-risk financial instruments, such as cryptocurrencies and the assessment of financial sector governance and law enforcement in various recent assessments is also low.
Provisions for crypto transaction rules are regulated in Chapter XVI or Chapter 16 concerning Financial Sector Technology Innovation (ITSK).
In Article 213, it is explained, the scope of ITSK includes payment systems, settlement of securities transactions, capital raising, investment management, risk management, raising and/or channeling of funds, market support, activities related to digital financial assets, including crypto assets, as well as service activities. other digital finance.
Crypto transactions will be regulated and directly supervised by the Financial Services Authority (OJK). As is well known, OJK regulation and supervision will not only cover financial service activities in the banking, capital market, insurance, guarantee, and pension fund sectors.
However, OJK supervision has now been added, namely to oversee financial service activities in the sector of financial institutions, venture capital companies, microfinance institutions, and other financial services institutions (LJK).
OJK supervisory duties have also been added to activities in the financial sector technology innovation (ITSK) sector, digital financial assets, and crypto assets.
With the addition of these duties and authorities, then in the P2SK Bill, there will be two additions to the composition of the OJK Board of Commissioners.
The regulation and supervision of crypto assets will later be under the Chief Executive of the Financial Sector Technology Innovation Supervisor (ITSK), Digital Financial Assets, and Crypto Assets.
Furthermore, the Minister of Finance Sri Mulyani admitted that she often received many complaints from the public about the unstable volatility of crypto asset investment.
Sri Mulyani was surprised because of the high volatility and instability in crypto asset investment.
“Crypto markets, which in the last few months or a year have all sent WhatsApp (WA) to me, crypto boom. The number that was only hundreds of billions became trillions. Suddenly it busts (inside) overnight. It’s a matter of governance,” explained Sri Mulyani in the event The highlight of the World Anti-Corruption Day (Hakordia) Commemoration of the Ministry of Finance yesterday, quoted on Wednesday (14/12/2022).