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Indonesia: Crypto Products Required To Pass On Regulatory Sandbox After New Rule

Press Releases Crypto News Bitcoinist Indonesia: Crypto Products Required To Pass On Regulatory Sandbox After New Rule

Indonesia’s regulatory agency has issued a new rule that could potentially affect crypto assets in the country. According to local reports, firms must introduce their products to the Financial Services Authority (OJK)’s Regulatory Sandbox.

Crypto Assets To Be Tested On Regulatory Sandbox

Local reports by news media outlet DetikFinance informed of the new regulatory rule issued by the OJK this week. The rule aims to “increase the development of the technological innovation of the financial sector” and safeguard users from losses and “fraudulent investments.”

OJK’s new measure requires Financial Services Institutions (FSIs) to enter new products and services in Indonesia’s regulatory sandbox. According to the reports, the regulation includes banking, insurance, and crypto companies that “are guaranteed to be suitable for use by consumers.”

Crypto firms must be evaluated in the regulatory sandbox before being authorized to operate in Indonesia. Moreover, crypto products and new business models developed by entities already licensed by the OJK will also need to go through the sandbox.

The Executive Head of the Supervisor of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets, Hasan Fawzi, said:

I think this is our spirit at OJK, especially in consumer protection and education. We hope that all our regulatory mechanisms will be present and have a direct impact on the prevention of fraudulent investments.

If companies fail to follow the new requirement and continue to operate, it will be considered unlicensed and the product illegal.

The regulatory sandbox is a testing mechanism to “assess the reliability of business processes, business models, and financial instruments.” Its goal is to ensure that innovation and financial technology
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Author: Rubmar Garcia

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