Learn more about crypto regulations in Indonesia and how to stay compliant.
Indonesia’s crypto market is developing rapidly. Just recently, on July 20, 2023, the country’s key crypto regulator officially established a crypto exchange, clearing house, and manager of crypto asset storage. These are expected to provide legal certainty while protecting the user community from crypto-related risks.
Earlier, in June 2023, the Indonesian government expanded the number of tradable cryptocurrencies to 501, including Bitcoin, Solana, and Ethereum. This move comes as part of a broader government initiative to facilitate the use of digital currencies in the country.
At the moment, Indonesia’s crypto regulations are being transformed in light of a new law that transfers supervisory authority from Bappebti to OJK, with a transition period of 2 years. Today, cryptocurrencies can only be traded like commodities in Indonesia, as they are not considered a legal tender. However, it is expected that cryptocurrencies will be considered securities after the transition period to the new regulator.
Let’s dive into the details of Indonesia crypto regulations below.
In 2023, the following laws regulate the crypto industry in Indonesia:
As of 2023, the key crypto regulator in Indonesia is the Commodity Futures Trading Regulatory Agency, known as Bappebti, which falls under the supervision of the Indonesian Ministry of Trade, and regulates futures trading (including crypto-asset trading). However, with the enactment of Law 4/2023, regulatory authority over crypto-assets will be transferred to the Financial Services Authority, or OJK, by 12 January 2025.
Meanwhile, the Financial Services Authority (OJK) regulates and supervises the financial services sector.
According to Bappebti Regulation No. 8 of 2021 on Implementing Guideline of Physical Market Trading of Crypto Assets in the Futures Exchange, crypto assets are defined as intangible commodities in digital form, using cryptography, information technology networks, and distributed ledgers to regulate the creation of new units, verify transactions, and secure transactions without the intervention of other parties.
Several types of crypto trading-related businesses are currently available in Indonesia:
The scope of crypto-asset physical trader activities includes:
According to the law of 2023, which transfers regulatory authorities from Bappebti to OJK, crypto-related activities are referred to as “technology innovation in the financial sector” (inovasi teknologi sektor keuangan or ITSK).
In the event that there are activities other than those referred to above, they must first obtain approval from the Head of Bappebti.
Initial Coin Offerings (ICOs) are not regulated in Indonesia yet.
Activities concerning cryptocurrency are required to obtain approval from BAPPEBTI to be conducted legally in Indonesia.
For each type of activity (futures exchange, crypto futures clearing house, crypto-asset storage managers, crypto-asset physical trader), different requirements are applied. Below are a few examples.
Requirements for Futures Exchanges that can carry out physical trading of Crypto Assets
Requirements for Futures Clearing House
Requirements for Crypto Asset Storage Managers
Requirements for Crypto Asset Physical Traders
A detailed list of requirements can be found in Bappebti Regulation No. 8/2021 on Guidelines for Conducting Crypto Asset Physical Market Trading on Commodity Exchanges as amended by Bappebti Regulation No. 13 of 2022.
Since the regulator will soon change, so may the approval rules. In accordance with the Act of 2023, crypto companies will be included in the concept of ITSK, or Inovasi Teknologi Sektor Keuanga (Financial Sector Technological Innovation).
Activity concerning cryptocurrency must implement Anti-Money Laundering/Prevention of Terrorism Financing/Proliferation of Weapons of Mass Destruction (APU PPT) Programs.
The AML requirements crypto businesses in the country must follow are:
Customer Due Diligence (CDD) is the process of collecting and verifying information about a customer during onboarding and assessing risks associated with it. This includes the customer’s name, address, and other personal data. In Indonesia, the following documents are required during the CDD process.
For natural persons:
For legal entities:
Check out the detailed AML requirements for Indonesia in our Compliance Guidelines: Indonesia
Administrative sanctions (fines and imprisonment) can be imposed for breaching crypto regulations in Indonesia (e.g. providing services without approval, violating AML/CFT provisions, etc.) .
Indonesia adopted the Travel Rule, or FATF Recommendation 16, in October 2021, with a de minimis threshold amounting to USD 1,000 (Rupiah value).
If the threshold of the transaction is more than or equal to the Rupiah value equivalent to USD 1,000, the following information about the sender must be obtained:
a) Sender’s name
b) Sender’s wallet address
c) Identity card for citizens of Indonesia, or passports and identity cards issued by the country of origin of the Crypto Asset Customer (KITAP), or Limited Stay Permit Card (KITAS) for foreign nationals if it is possible to obtain them) Sender’s Address
Information about the recipient must include:
a) Recipient’s name
b) Recipient’s Wallet address (in the event the recipient or the wallet address includes cold wallet or wallet outside of the Trader)
c) Recipient’s address
If the threshold of the transaction is less than the Rupiah value USD 1,000, the following information must be obtained:
a) Sender’s name
b) Sender’s wallet address
c) Recipient’s name
d) Recipient’s wallet address.
Yes, crypto is legal in Indonesia, but it can only be traded as a commodity. It is not accepted as a payment instrument. It is expected that after the transfer of authorities from Bappebti to OJK, cryptocurrencies will be considered securities.
Yes, there are VAT and income taxes imposed on crypto transactions in Indonesia.
Yes, cryptocurrency is regulated in Indonesia by the Commodity Futures Trading Regulatory Agency, known as Bappebti. However, by January 2025, the regulatory authority over crypto-assets will be transferred from Bappebti to the Financial Services Authority (OJK).