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Indonesia Introduces Compulsory Regulatory Sandbox for Crypto Firms

Crypto firms looking to operate in Indonesia must pass through a regulatory sandbox before they receive licenses from the country’s Financial Services Authority (OJK). The OJK will consider any firm that offers cryptocurrency services without going through the sandbox illegal.

Indonesia’s Sandbox to Educate and Protect Customers

In a media briefing on Tuesday, the OJK’s Head of Supervision Hasan Fawzi said the move is needed to properly protect customers. “This aligns with our spirit at OJK, particularly in consumer protection and education. We expect our regulatory mechanisms to directly impact the prevention of fraudulent investments,” Fawzi said.

A regulatory sandbox is an environment controlled by government authorities where businesses and corporate organizations can test products and services for experimentation while ensuring regulatory compliance. This helps regulators to properly understand the implications of new products, services, and technologies before full-scale implementation.

Indonesia is continuously ramping up regulatory efforts aimed at governing its cryptocurrency industry. Last year, the government  License.

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