A new law in Indonesia could not only change the crypto regulatory landscape, but also strengthen the development of the industry in the country.
With the upcoming law, Indonesia can treat crypto as a security, not a commodity.
A New Law in Indonesia Could Change the View on Crypto
A new Indonesian law that will transfer crypto regulatory powers from commodity watchdog CoFTRA to the Financial Services Authority (OJK) marks a shift in the country’s approach to overseeing the industry and an acknowledgment that there is more to it than asset trading.
The law, signed by Indonesian President Joko Widodo on January 12, is a financial regulation revision that replaces at least 17 old local laws to accommodate technological advances. It could change the country’s unique classification of crypto assets to commodities like gold or coal.
According to Indonesia’s Blockchain trade association ABI, the change in regulators heralds that the country has not overlooked the promise of crypto’s underlying technologies, especially as it will oversee the industry under OJK’s “Financial Sector Technological Innovation” measures.
ABI President Asih Karnengsih said in a statement: