Indonesia to introduce experimental space for supervising crypto assets.

The Indonesian Financial Services Authority (OJK) has announced that local financial institutions must participate in the regulatory sandbox in order to introduce new products and services, including crypto asset products. According to a report from DetikFinance, once regulated, crypto assets will also need to undergo testing in the regulatory sandbox. This means that crypto firms in the sandbox stage will need to be evaluated and approved by the regulator before operating in the country. The purpose of including crypto assets in the sandbox is to eliminate fraudulent investments. Starting in January 2025, the OJK will take over the regulation of the crypto industry from the commodities agency. Currently, Indonesia classifies crypto assets as commodities, but there is speculation that they may be reconsidered as financial instruments under the OJK’s governance. The crypto landscape in Indonesia has been growing, with a pro-crypto vice president elected in the recent presidential elections. The country has also launched its national crypto exchange and is conducting blockchain trials in public services. Additionally, there have been discussions about revising the dual taxation on crypto transactions.