The transition of crypto asset oversight in Indonesia from the Commodity Futures Trading Agency to the Financial Services Authority is said to be facing delays due to a lack of supportive government regulation.

According to a hadith a report According to the Jakarta Globe, the authority to supervise crypto assets has been transferred from the previous agency, Bappebti under the Ministry of Commerce to Financial Services Authority It is scheduled to take place by January 12, 2025. However, the transfer may be further delayed due to a lack of supportive government regulation.

The head of the Indonesian Financial Services Authority, known locally as OJK, Mahendra Siregar, confirmed to reporters that authorities are currently coordinating discussions and making necessary preparations for the upcoming transfer.

“We have worked closely with the Ministry of Commerce to ensure a smooth process. Once the regulation is issued, it will provide the legal basis for the transition,” Siregar said.

The plan to hand over oversight of crypto assets from Bappebti to the OJK was first presented by Finance Minister Sri Mulyani in late 2022. The draft law required to manage the transition between the two government bodies will require the legislative and executive branches of the Indonesian government to reach an agreement. Agree on all provisions. At the time of writing, the official government draft law for the transitional period on January 12 has not yet been published.

According to the report, both OJK and Bappebti have confirmed that they are preparing for the transition. OJK Commissioner Hassan Fawzi said the agency is studying how different countries implement cryptocurrency regulations and is training regulators to play this role. While Chairman Bappebti Kasan said that the current rules regarding cryptocurrencies in the country will remain in place until new regulations are enacted by the OJK.

Many local players in the industry, including brokers and exchange companies, are anticipating this shift as they see this move as a step forward in regulating the cryptocurrency sector and legitimizing cryptocurrency trading for investors. OJK works closely with the Central Bank of Indonesia, in regulating the financial sectors, which may lead to simplification of cryptocurrency regulations in the future.

In December, Bank Indonesia complete Proof of concept for Garuda, Indonesia's central bank digital currency pilot project.