Indonesia is diving into the world of crypto with both feet! But if you’re planning to start a crypto business there, you’ll need to know the rules first. The country has taken big steps to build a safe and clear path for crypto companies. Getting licensed isn’t just smart — it’s required. Let’s make sense of it all, step by step!
Why Indonesia Cares About Crypto
Indonesia is one of the most exciting markets for digital assets. Millions of people are trading crypto each year. The government wants people to enjoy this new tech safely. That’s why they’ve made regulations to protect users and keep things fair.
In Indonesia, crypto is legal — but only as a commodity, not as money. That means you can trade it like gold or oil, but you can’t use it to buy your morning coffee.
Who Regulates Crypto in Indonesia?
Before 2023, crypto business licenses were handled by BAPPEBTI, the Commodity Futures Trading Regulatory Agency. But things changed.
Now, Indonesia is shifting oversight to a new body: the Financial Services Authority (OJK). This move aims to provide clearer, more focused regulation.
So, if you’re planning to open a crypto business in Indonesia today, you’ll deal with both BAPPEBTI and, eventually, OJK. For now, BAPPEBTI still handles the licenses.
What Kind of Crypto Businesses Need a License?
If you want to work with crypto in Indonesia, a license is not optional. Here’s a quick list of businesses that need one:
- Crypto Exchanges: Platforms where users buy or sell crypto.
- Crypto Wallets: Services offering storage for digital assets.
- Crypto Brokers: Middlemen that handle buying and selling for others.
- ICO Platforms: Platforms offering new crypto coins to investors.
Even if your platform is based in another country, you’ll still need a license if you serve users in Indonesia.
Step-by-Step: How to Get a License
Let’s explore how to go from dreamer to licensed crypto superhero in Indonesia.
- Register Your Company in Indonesia: Your crypto firm must be set up as a legal company in the country.
- Meet the Capital Requirements: You’ll need strong finances — the government wants to see you’re serious. As of 2024, some licenses ask for capital of up to IDR 80 billion (around USD 5 million).
- Meet the Tech Requirements: You must prove that your platform is safe and secure. This includes using data centers in Indonesia.
- Submit Your Application to BAPPEBTI: This includes detailed paperwork, business plans, risk management policies, cybersecurity info, and more.
- Get Reviewed: BAPPEBTI will check your documents and systems. If everything looks good, you get your license.
Sounds simple? Well, kind of. But don’t worry, a good legal team can help make the process smoother.
What About Compliance After Getting Licensed?
Getting licensed is just the beginning. You must follow strict rules to keep it. Let’s look at the most important ones:
- Customer Identity Check (KYC): You must verify every user’s identity. No anonymous trading allowed!
- Anti-Money Laundering (AML) Procedures: You have to watch out for bad guys using your platform for money laundering. That means setting up monitoring systems and reports.
- Transaction Reporting: You’ll report trading activity to the authorities regularly.
- Security Systems: You must protect customer funds and data with strong cybersecurity tools.
- Local Server Requirement: All user data must be stored in Indonesia. No moving it to other countries!
What Is the Role of OJK in the Future?
Indonesia plans for OJK to take full control of crypto oversight by 2025. This is part of the Financial Sector Development and Strengthening (P2SK) Law, passed in late 2022.
Once OJK takes over, you may need to adjust your license — or apply for a new one. No big changes yet, but stay alert as the shift gets closer.
What Tokens Are Allowed?
You can’t list just any coin or token in Indonesia. BAPPEBTI has a white list of approved tokens. There are around 500+ allowed as of early 2024.
These tokens are evaluated for:
- Security
- Volume of Trade
- Underlying Tech
- Local Demand
If your project wants to get listed, you’ll need to apply and go through an evaluation process. It’s not easy, but it’s fair.
Penalties for Non-Compliance
So what happens if you do crypto business without a license? 💥 Big trouble!
Here’s what you might face:
- Fines – You could pay millions in IDR.
- Shut Down – The government can block your site or app.
- Jail Time – Criminal charges can apply in serious cases.
Clearly, it’s best to follow the rules from the start.
Tips for Staying Compliant
Want to play it safe in the Indonesian crypto market? Here’s how:
- Hire a Local Legal Advisor: Someone who knows crypto and Indonesian laws can be your best friend.
- Keep Up with Law Changes: Subscribe to updates from BAPPEBTI and OJK.
- Run Regular Security Checks: Make sure your system is hack-proof.
- Provide Regular Staff Training: Keep your team up to date with compliance skills.
- Have an Exit Plan: Just in case rules change, plan for adjustments or future exits.
Looking Ahead
Indonesia is building a digital future. It’s not just about coins — it’s about trustworthy innovation. The government welcomes crypto, but only if it’s responsible. That means fair access, strong protection, and quality service.
For companies ready to follow the rules, Indonesia offers a rich opportunity. With strong population growth, high mobile use, and growing financial hunger, the market is just getting started.
Licensing takes effort, but the reward is worth it. So, make sure your crypto business takes the right steps — and enjoy surfing the Indonesian crypto wave!