INDONESIA Trends and Developments Contributed by: Winnie Yamashita Rolindrawan, Bianca Putri Kadarisman and Qafaldi Putra Ismayudha, SSEK Law Firm
Travel Rule, segregated accounts, and reporting obligations OJK Reg 27/2024, as amended, introduces a more flexible approach to Travel Rule compliance, permit- ting Traders to implement it through co-operation with third-party service providers. As the regulation does not yet elaborate on the mechanics of such co-oper- ation, market participants will need to monitor future OJK guidance and developing market practice. The amended regulation also revises the segregated account regime: funds previously placed in accounts held in the name of Traders are now to be placed in accounts held by Clearing Institutions for the ben- efit of individual consumers, reflecting a shift toward greater counterparty protection. Separately, the daily reporting obligation for Digital Financial Asset Trading Providers has been abolished, with reporting obliga- tions now limited to monthly, quarterly and annual submissions, reducing the administrative burden on operators. Regulatory sandbox for derivative trading Finally, OJK Reg 27/2024, as amended, grants the OJK a new authority to conduct regulatory sandbox trials specifically for digital financial asset derivative trading activities. This provision reflects the OJK’s intent to enable innovation in derivative products while maintaining supervisory control, allowing the regulator to assess the feasibility and risks of new derivative models in a controlled environment before broader market rollout. Taken together, the amendments introduced by OJK Reg 27/2024, as amended, show that the OJK is actively and iteratively building out its supervisory framework, rather than allowing the foundational regime to remain static in the face of a fast-moving market. Crypto and Blockchain Market Developments Beyond the ongoing refinement of the regulatory regime, Indonesia’s crypto and blockchain market is witnessing significant activity at the product and com- mercial level. Two developments stand out as being particularly relevant for participants and prospective entrants to the market:
previously stipulated under the digital financial asset framework. This amendment aligns the digital finan- cial asset sector with Indonesia’s broader electronic system regulatory requirements. Amendments to Bourse, Clearing Institution and Trader obligations The amended regulation introduces several new requirements applicable across the various catego- ries of Digital Financial Asset Trading Providers. For Bourses, OJK Reg 27/2024, as amended, clarifies and expands the scope of duties of Bourse committees to include at least: • supporting the development of the digital financial asset industry; • providing recommendations on the evaluation of listed digital financial assets; and • advising on the determination of reference prices for digital financial asset derivatives. The ISO certification requirement, previously limited to a Bourse’s Disaster Recovery Centre, has also been broadened to apply more generally. Bourse Rules must now also include mechanisms for the settlement of digital financial assets removed from the approved list. For Clearing Institutions, OJK Reg 27/2024, as amended, introduces additional provisions to be reflected in Clearing Rules, including mechanisms governing the management of benefits derived from consumers’ funds. Notably, the previous requirement for Custodians to obtain a recommendation from a Clearing Institution as part of the licensing process has been removed, simplifying the path to licensing for Custodian applicants. In relation to Traders, the amended regulation clarifies that a failure to comply with OJK requests for addi- tional documents or adjustments during the licensing process will result in the cancellation of the applica- tion, introducing a clearer consequence for non-com- pliance that applicants must bear in mind.
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