OJK Issues New Rules to Supervise Fintech and Crypto Players

The Financial Services Authority (OJK) has just issued OJK Regulation Number 3 of 2024 (POJK 3/2024) concerning the Implementation of Financial Sector Technology Innovation (ITSK) which contains several main articles, namely Regulatory Sandbox and digital financial assets.

This rule was made based on the mandate of Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UU P2SK). Through POJK 3/2024, the government is trying to create an ecosystem fintech integrated with an activity-based approach. The aim is to support innovation that ensures consumer protection and risk mitigation.

DailySocial.id summarizes several main articles of POJK /2024, in which there are improvements to the Regulatory Sandbox mechanism or facilities for testing and developing financial technology innovations. These improvements include a number of aspects, such as adding eligibility criteria, testing requirements, and exit policies (exit policy).

Article 50 Paragraph 1 stipulates that organizers of digital financial innovation who are in the application process and participants who are still in the implementation of the Regulatory Sandbox as regulated in POJK 13/2018 concerning Digital Financial Innovation are given the status:

• Recommended with the obligation to register or have a business permit with the OJK.
• Recommended without the obligation to register or have a business permit with the OJK.
• Not recommended, no later than six months from the enactment of POJK 3/2024.

Then, digital financial assets are also regulated in Article 2 POJK 3/2024 as also regulated in Article 6 of the P2SK Law. Meanwhile, the scope of ITSK as regulated in Article 2 includes:

• Settlement of securities transactions.
• Capital raising.
• Investment management.
• Risk management.
• Collection and/or distribution of funds.
• Market support.
• Activities related to digital financial assets, including crypto assets.

"POJK 3/2024 also stipulates the obligation to obtain permit status for organizers, improve coordination between supervisors in regulation and supervision, and increase financial literacy and consumer protection," said the OJK's official statement some time ago.

As known, crypto asset supervision transition from Bappebti to OJK there is a transition period of 2 years. Meanwhile, a Government Regulation (PP) to oversee this transition will be drafted in the next 6 months with reference to several steps, including a transfer mechanism.

Overall, the Indonesian Fintech Association (AFTECH) noted that there are 336 registered fintech companies in Indonesia. Meanwhile, CoFTRA noted that there are 33 Prospective Crypto Asset Physical Traders (CPFAK) who are registered and regulated.