Thursday, April 18, 2024

Indonesia Strengthens Crypto Industry with New Regulations.

  • The rule lays forth the framework for handling cryptocurrency’s progress in finance without getting too technical.
  • The OJK worked with Malaysia, Singapore, and Dubai earlier this month to create a framework for crypto policy.

New regulations have been announced by Indonesia’s financial services watchdog, the Financial Services Authority (OJK), in an effort to stimulate technological innovation in the financial sector. Starting in January 2025, cryptocurrencies will be governed by these regulations.

This guide serves as a how-to manual for financial industry professionals, such as banks and insurance businesses, on how to innovate when pursuing new technological opportunities. The legislation discusses the ways in which developments in the finance industry affect various financial goods and services as well as the digital operations of businesses.

It also contains instructions on how to safeguard consumers, build up sandboxes for testing new technology, and report test results. It is noteworthy because it includes actions pertaining to digital financial assets, such as cryptocurrency.

This rule establishes the framework for supervising cryptocurrency’s financial innovations, despite omitting some details. The establishment of this crypto law is evidence of OJK’s aggressive preparations to assume control of the cryptocurrency space by January 2025.

In order to oversee the change in digital financial asset supervision, OJK is forming a transition team in close collaboration with Bank Indonesia and Bappebti, the incumbent crypto regulator.

Earlier this month, OJK started collaborating with financial authorities from Dubai, Singapore, and Malaysia to create a comprehensive crypto strategy. Establishing a strong foundation for crypto policy is the goal of these international partnerships, which include writing Memorandums of Understanding with the Monetary Authority of Singapore, the Virtual Asset Regulatory Authority of Dubai, and Bank Negara of Malaysia.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular