OJK Sees Bright Future for Indonesia’s Crypto Industry

The Financial Services Authority (OJK) is optimistic about the future of Indonesia’s cryptocurrency industry, citing the significant increase in transaction value throughout 2024.

Hasan Fawzi, Chief Executive of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets Supervision at OJK, stated that cryptocurrency adoption has been expanding globally. This growth is largely driven by regulatory clarity and a more accommodating stance from financial authorities worldwide.

For instance, the European Union fully implemented the Markets in Crypto Assets Regulation (MiCA) in December 2024. Meanwhile, in the United States, the Securities and Exchange Commission (SEC) made a milestone decision in January 2024 by officially approving the trading of Bitcoin spot-based Exchange Traded Funds (ETFs), further encouraging institutional investment.

Furthermore, the SEC strengthened the digital asset ecosystem by approving ETFs based on a combination of Bitcoin and Ethereum, starting in 2025.

Market Growth and Indonesia’s Position in the Crypto Landscape

Hasan highlighted that the global cryptocurrency market capitalization surged by 45.7% to USD 3.4 trillion in 2024. A PWC annual report also indicated that 47% of traditional hedge funds now have exposure to digital assets, reflecting a 29% increase from the previous year.

"This trend clearly demonstrates the rising interest from both retail and institutional investors in this new asset class," he remarked.

According to Chainanalysis, Indonesia ranked third in the 2024 Global Crypto Adoption Index, trailing only India and Nigeria. As of December 2024, the number of registered cryptocurrency users in Indonesia reached 22.9 million, with the total transaction value skyrocketing 335.9% to IDR 650.6 trillion compared to the previous year.

"This surge not only highlights the growing use of crypto assets among the public but also cements Indonesia’s strategic role in the global digital financial ecosystem," Hasan added.

To foster trust in cryptocurrency use, OJK has introduced several regulations, including POJK Number 27 of 2024 on Digital Financial Asset Trading and SEOJK Number 20 of 2024, which further strengthens crypto asset regulations.

Strengthening Crypto Regulations in Indonesia and Beyond

At the same event, Roman Proskalovich, Research Lead of the Emergent Money Systems workstream at the Cambridge Digital Assets Programme, emphasized that regulators worldwide are working to integrate crypto assets into formal regulatory frameworks.

He pointed out that this effort is essential due to past incidents that harmed consumers, such as the collapse of FTX and the failure of Terra LUNA stablecoin. These cases have prompted global regulators to take stronger action on stablecoins and the broader digital asset ecosystem.

In Indonesia, OJK has reinforced its commitment to overseeing the crypto industry, following the official transfer of supervision from the Commodity Futures Trading Regulatory Agency (Bappebti). Djoko Kurnijanto, Head of Regulations and Licensing at OJK’s IAKD department, explained that this transition aligns with Law Number 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK).

"Now that crypto assets fall under OJK’s jurisdiction, they are classified as financial assets, meaning their regulations must align with other financial services sectors," Djoko concluded.

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