Through its official release, Tuesday (25/1/22), the Indonesian Financial Services Authority (OJK) has strictly prohibited financial service institutions from using, marketing, and/or facilitating trading of crypto assets or cryptocurrencies.
Chairman of the OJK Board of Commissioners, Wimboh Santoso, explained that the OJK does not supervise and regulate crypto assets. This authority is held by the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade.
Even so, he explained that crypto-assets should be banned because they are a type of commodity that has fluctuations in value that can go up and down at any time. The public must understand the risks of investing in these commodities.
Member of the OJK Board of Commissioners for Consumer Education and Protection, Tirta Segara, also approved the policy. According to him, the regulator does not protect crypto investors.
He said, “Crypto investing is different from other types of investments such as stocks, bonds, or mutual funds. There is no protection for investors because OJK does not regulate crypto assets. That’s why we don’t have the authority to protect crypto investors’ assets.”
Then, are there crypto regulations?
Crypto assets are regulated by the Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade through CoFTRA Regulation No. 2 of 2019 concerning the Implementation of the Physical Commodity Market on the Futures Exchange.
However, in Indonesia, crypto is still considered a commodity futures exchange. This is why crypto is still prohibited from being used as legal tender. Crypto is only allowed as an investment and trading commodity.
