"Comprehensive Guide to Cryptocurrency Regulations in Indonesia for the year 2024"
Indonesia Strengthens Crypto Regulation and Taxation
In a significant move, Indonesia's Financial Services Authority (OJK) has taken over the regulation of cryptocurrency trading from the Commodity Futures Trading Regulatory Agency (Bappebti), effective from January 10, 2025. This shift, under Law No. 4 of 2023, reclassifies crypto assets from commodities to digital financial assets, placing them under the same regulatory framework as traditional financial securities.
New Regulatory Authority and Licensing
With the transfer of authority, OJK now oversees crypto trading and related licensing. All Bappebti-issued licenses remain valid, but crypto businesses must comply with new OJK regulations fully by July 2025. OJK has introduced Regulation No. 27/2024 to set the crypto trading rules and an Integrated Licensing and Registration System (SPRINT) to streamline registration.
Taxation Changes
Effective August 1, 2025, crypto assets are officially classified as securities and exempt from value-added tax (VAT), meaning the transfer of crypto assets is no longer VAT taxable. However, VAT still applies to certain services like crypto mining verification and services by trading platforms (wallets, trading interfaces, deposits/withdrawals) at rates of 2.2% or 12% on fees/commissions. Transaction tax rates have also increased: domestic crypto exchanges now impose 0.21% tax on transaction value (up from 0.1%), while overseas platform transactions face a 1% tax (previously 0.2%), creating incentives to use domestic licensed platforms.
Market Impact and Strategy
Indonesia is focusing on shifting crypto trading from unregulated foreign platforms to regulated domestic exchanges. Several major foreign platforms without licenses were blocked in 2022. The regulatory shift aims to provide greater legal certainty, investor protection, and integration of crypto assets into the broader financial system overseen by OJK.
Regulatory Requirements for Crypto Activities
To obtain approval for crypto activities, different requirements are applied for each type of activity. All crypto activities must implement Anti-Money Laundering/Prevention of Terrorism Financing/Proliferation of Weapons of Mass Destruction (APU PPT) Programs. This includes the development and implementation of internal Anti-Money Laundering (AML) policies, Customer Due Diligence (CDD), conducting sanctions screening, and transaction monitoring.
The CDD process requires detailed information for both natural persons and legal entities. For natural persons, this includes full name, identity document number, residential address, place and date of birth, citizenship, employment details, gender, signature or biometric data. For legal entities, the CDD process requires name, license number, line of business, domicile address, telephone number, place and date of incorporation, form of legal entity, names of members of board directors, commissioners, shareholders, and information of a natural person authorized to act on behalf of the corporation.
Expanded Trading Options and Regulatory Oversight
The Indonesian government expanded the number of tradable cryptocurrencies to 501, including Bitcoin, Solana, and Ethereum in June 2023. Cryptocurrencies are currently considered as intangible commodities in digital form in Indonesia. The regulatory authority over crypto-assets will be transferred from Bappebti to OJK by January 12, 2025.
The Travel Rule, which applies for transactions with a Rupiah value equivalent to or greater than USD 1,000, requiring additional sender and recipient information, is also in place for crypto transactions in Indonesia. Crypto companies will be included in the concept of ITSK, or Inovasi Teknologi Sektor Keuanga (Financial Sector Technological Innovation) as per the Act of 2023.
In summary, after transferring regulatory authority from Bappebti to OJK, Indonesia now regulates crypto as digital financial assets with enhanced oversight by a financial regulator. Simultaneously, new tax rules effective August 2025 exempt crypto asset transfers from VAT but impose higher transaction taxes favoring domestic trading platforms, reinforcing Indonesiaβs strategy to formalize and control its crypto market.
- The financial regulation industry in Indonesia is undergoing significant changes, as the Financial Services Authority (OJK) takes over crypto regulation, effectively from 2025.
- This move follows the reclassification of crypto assets from commodities to digital financial assets, placing them under the same regulatory framework as traditional financial securities.
- Under the new regulatory oversight, OJK will be responsible for overseeing crypto trading, related licensing, and implementing new rules, such as Regulation No. 27/2024 and SPRINT.
- In the realm of personal-finance, the taxation changes stipulate that as of August 2025, crypto assets will be officially classified as securities and exempt from value-added tax (VAT).
- Technology and innovation in the education-and-self-development sector will play a crucial role in understanding and complying with the new regulations, as crypto businesses must implement strict Anti-Money Laundering (AML) policies and Customer Due Diligence (CDD) processes.
- Sports, entertainment, and general-news enthusiasts should keep an eye on the ongoing developments in the Indonesian crypto market, as policymakers aim to formalize and control the market by favoring domestic licensed platforms, expanding the number of tradable cryptocurrencies, and enforcing new regulations.
