The Financial Services Authority (OJK) will be tasked by Indonesian authorities with monitoring, and regulating the country’s expanding cryptocurrency market. The Ministry of Trade and the Commodity Futures Trading Regulatory Agency, which share responsibility, now regulate the market.
As per a news publication, the modification was suggested by Finance Minister Sri Mulyani Indrawati and is a component of the new banking industry legislation that is now being discussed in parliament. Lawmakers presented the government with the draft bill in September. Around that time, word spread about the largest economy in Southeast Asia getting ready to strengthen the regulation of cryptocurrency exchanges.
Indonesia does not allow cryptocurrency payments, although investments are permitted in the commodities market. In June, there were over 15 million cryptocurrency investors in the nation, up from just 4 million two years earlier, according to Sri Mulyani.
She said they needed to create a solid and dependable system of investor protection and oversight, particularly for high-risk investment products, at a parliamentary session on Thursday.
After the government and the legislature agree on every aspect of the measure, it will be signed into law.
The Indonesian parliament wants to give the Bank of Indonesia more authority to oversee both economic expansion and price stability. While expressing her support for the idea, Sri Mulyani also underlined the need to preserve the independence of financial regulators, particularly the central bank.
The minister also brought up the recent volatility in the cryptocurrency market at the meeting, which was held to allow the executive power to deliver its initial response and offer additions to the legislative plan.
Additionally, Indonesian lawmakers want the Bank of Indonesia to oversee both economic growth and price stability. While expressing her support for the idea, Sri Mulyani also underlined the need to preserve the independence of financial regulators, particularly the central bank.