Crypto Regulation In Indonesia | Rules & Licensing Explained

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Indonesia has established a legal framework for cryptocurrency regulation, allowing trading and investment but prohibiting its use as a means of payment. As of January 10, 2025, oversight of crypto assets has officially transitioned from Bappebti to the Financial Services Authority (OJK), classifying crypto assets as digital financial assets. Companies wishing to offer crypto-related services must obtain approval from OJK, complying with capital requirements, governance structures, and reporting obligations.

Indonesia has put clear rules in place for crypto trading, outlining what businesses and investors can and can’t do with digital assets. While using crypto for payments is banned, trading and investment are allowed under specific conditions. Government agencies require crypto platforms to get licensed, and rules are also in place to protect users from fraud and risky platforms.

By 2025, crypto regulation will shift to the Financial Services Authority (OJK), which might bring changes to current policies. Here’s a breakdown of Indonesia’s crypto rules, taxes, and what might change in the future.

Legal status of cryptocurrencies in Indonesia

Crypto Regulation in Indonesia: Legal Rules Explained

Use as a means of payment

Indonesia does not allow cryptocurrencies for payments. Under Indonesian law, only the Indonesian rupiah can be used for transactions. In June 2021, Governor of Bank Indonesia, Perry Warjiyo, confirmed that crypto payments remain illegal, pointing to national laws like the Bank Indonesia Act and the Currency Act. Breaking this rule can lead to serious consequences, including deportation for foreigners.

Trading and investments

Even though crypto payments are banned, crypto is treated as a tradable commodity in Indonesia and can be traded on licensed exchanges. Bappebti used to handle crypto regulations, but as of January 2025, OJK has taken over crypto regulation, following the Financial Sector Development and Strengthening Law passed in December 2022.

Crypto businesses need a license and must follow strict rules, including rules to prevent money laundering and terrorism financing. Crypto transactions also come with taxes, like VAT and income tax.

Regulatory authorities

Bappebti

The Commodity Futures Trading Regulatory Agency (Bappebti) used to regulate crypto trading in Indonesia. It played a key role in monitoring cryptocurrency exchanges and making sure they followed the rules in the crypto trading space. In May 2024, Bappebti created a dedicated crypto oversight team to strengthen its grip on crypto regulations.

OJK

Under Law No. 4 of 2023 on Financial Sector Development and Strengthening, control over crypto regulations in Indonesia shifted from Bappebti to the Financial Services Authority (OJK). The shift started when the law was passed on January 12, 2023, and it should be fully in place by January 10, 2025.

To get ready for this role, OJK issued Regulation No. 27/2024, setting rules for crypto trading. Additionally, OJK has developed the Integrated Licensing and Registration System (SPRINT) to make licensing and registration easier for businesses in the crypto market.

Key regulatory acts

Indonesia has a different approach to crypto rules, treating it separately from stocks and currencies. Unlike many countries that see crypto as either money or securities, Indonesia calls it a commodity, meaning it falls under Bappebti’s authority. Most people don’t realize this classification stops crypto from being used for payments. Trading is fully legal, but if a business accepts crypto as payment, it can face strict penalties.

Few people talk about the capital rule for crypto exchanges in Indonesia. To operate legally, an exchange must hold at least 100 billion IDR (around $6.5 million USD) in capital. Many traders don’t see how this squeezes out small players and affects competition, making it hard for new platforms to enter the market. While Indonesia has a booming crypto community, the reality is that only big institutions get to play on the legal side.

Not many know about Indonesia’s rule that crypto exchanges must keep funds inside the country. This rule is meant to protect local investors from currency risks and foreign crackdowns, but it also means exchanges are stuck with whatever local regulators decide. If the government tightens capital controls or changes tax laws, domestic exchanges could be forced to hold customer assets in a way that makes withdrawals slow or difficult.

Law on financial sector development and strengthening (UU PPSK)

In December 2022, Indonesia introduced a new financial law (UU PPSK) that changed how crypto is regulated. It started moving crypto oversight from Bappebti to OJK, shifting control to the Financial Services Authority. The shift started once the law was approved on December 15, 2022, and is set to finish by early 2025. Until then, Bappebti still regulates crypto, now working alongside OJK. The reform is designed to improve investor safety, tighten market rules, and match global standards.

To run a cryptocurrency exchange in Indonesia, companies must follow strict rules set by regulators. Companies that want to offer crypto trading in Indonesia need to get a license and meet key standards for security, reporting, and user safety.

Main rules for cryptocurrency exchanges

Indonesia’s crypto regulations are stricter than most traders realize. It’s not that Indonesia opposes crypto — it simply classifies it as a commodity, not money. This detail makes a huge difference. Crypto is regulated by the Commodity Futures Trading Regulatory Agency (Bappebti) instead of the central bank. So, exchanges have to follow strict futures trading rules, including maintaining a minimum capital of 100 billion IDR (~$6.3 million). This rule sets one of the highest financial barriers in Southeast Asia, shutting out smaller exchanges.

Another surprising rule is mandatory local storage of user funds. In most countries, exchanges store crypto wherever they want, but Indonesia requires funds to be held locally in Indonesian banks. The goal is to protect users, but it also makes trading more difficult. Since global exchanges can’t easily meet this requirement, some partner with local firms to work around it.

Perhaps the most overlooked regulation is the requirement for listed cryptocurrencies to meet Bappebti’s criteria. Indonesia has an approved list of tradable assets, and if a token isn’t on that list, it can’t be legally traded in the country. While this helps prevent risky coins from flooding the market, it also blocks access to newer crypto projects that traders elsewhere can invest in freely.

Crypto asset custodians

Companies providing digital asset custody services are also subject to licensing and must comply with established security standards. Custodians are required to implement data protection technologies that prevent unauthorized access to client funds. In Indonesia, the use of cold wallets for asset storage is recommended to minimize the risks of cyberattacks and fraud.

Additionally, custody service providers must undergo regular independent audits and submit reports on their activities to regulatory authorities. Custodians are responsible for the safekeeping of client funds, and violations in this area may result in license revocation and financial penalties.

Cryptocurrency taxation in Indonesia

Since May 1, 2022, Indonesia has introduced taxes on cryptocurrency transactions, including value-added tax (VAT) and income tax. These measures aim to regulate the rapidly growing digital asset market and generate additional revenue for the government.

Value-added tax (VAT)

Indonesia taxes crypto transactions under Regulation No. 68/PMK.03/2022. Crypto sales are taxed with VAT at 0.1% of the transaction value, which is lower than the country’s standard 11% VAT rate. The government sees crypto as a digital asset with real economic value, making it taxable.

Income tax

Indonesia's crypto tax rules have some surprising twists. Not everyone knows that tax rates change depending on whether the exchange is registered. If you trade on an unregistered exchange, both the VAT and income tax rates double to 0.22% and 0.2%, respectively. This big jump is meant to nudge people toward using approved platforms and following the rules.

There's also an interesting angle when it comes to taxing crypto mining. Miners face a 1.1% VAT on the value of mined assets and a 0.1% income tax on their earnings. They have to figure out and pay these taxes themselves, so keeping detailed records is crucial. Plus, services like electronic wallets and asset verification are also taxed, showing how the government wants to cover all bases in the crypto world.

Future changes and prospects

Indonesia’s crypto landscape is more complex than it seems — while the government limits public access, it’s also exploring blockchain behind the scenes. Many think Indonesia’s crypto payment ban means the country is against digital assets, but that’s not the full picture.

The game-changer will be Indonesia’s national crypto exchange, which is more than just a trading platform — it’s a way to control how money moves in and out of crypto. This exchange will act as a checkpoint for capital moving through crypto markets. Big companies will likely get the first access, while smaller traders deal with stricter KYC rules, making decentralized platforms more attractive.

One big factor people miss is how stablecoins are already playing a huge role in Indonesia’s trade and remittances. Importers and freelancers use them to dodge banking delays and cut Forex fees. Regulators are planning to launch a rupiah-backed stablecoin, which could shake up how businesses use crypto for payments. This move would give the government more control over digital transactions, but it could also limit how freely people move money using crypto.

Transition to OJK regulation

The transfer of regulatory authority to OJK will involve a review of the existing regulatory framework. OJK plans to introduce more transparent and stricter rules aligned with international standards. This may include tighter licensing requirements for cryptocurrency exchanges, enhanced anti-money laundering (AML) and counter-terrorism financing (CFT) measures, and mandatory compliance with know-your-customer (KYC) procedures. Additionally, OJK is expected to collaborate with other government agencies to implement a comprehensive regulatory approach to digital assets.

Possible recognition of crypto assets as securities

With OJK taking over, some crypto assets might be classified differently. Until now, Indonesia treated cryptocurrencies mostly as commodities. Since OJK handles financial markets and securities, some cryptos might now be labeled as securities. This would mean stricter rules like mandatory registration, detailed disclosures, and compliance with corporate governance. The goal is to tighten oversight, make markets fairer, and reduce risks for investors.

Best crypto exchanges in Indonesia
	Coins Supported	Spot Taker fee, %	Spot Maker Fee, %	TU overall score	Open an account
Bybit	638	0,1	0,1	9.2	Open an account Your capital is at risk.
MEXC	2276	0,05	0	9.1	Open an account Your capital is at risk.
OKX	329	0,1	0,08	8.9	Open an account Your capital is at risk.
Binance	415	0,1	0,1	8.7	Open an account Your capital is at risk.
Bitget	831	0,1	0,1	8.65	Open an account Your capital is at risk.

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Indonesia’s crypto rules are shifting power from traders to institutions

Indonesia’s crypto rules are changing the game, shifting control away from retail traders to big financial players. While most traders focused on Bappebti’s oversight, the move to OJK is bringing crypto regulation closer to traditional finance. This isn’t just about following new rules — it’s about giving financial institutions more control while squeezing out smaller traders.

The new licensing setup makes it easier for big firms with deep pockets while smaller exchanges struggle to keep up. If you’re trading crypto in Indonesia, expect fewer options for direct market access and more reliance on institution-backed exchanges.

One major shift that some people are talking about is the plan to centralize crypto storage. The government wants crypto assets to be stored only with approved custodians, limiting traders’ choices. This would mean tougher withdrawal rules, extra fees, and a risk of the government freezing assets or enforcing tax policies on stored funds. If you’re in Indonesia’s crypto market, self-custody will be more important than ever.

Conclusion

Cryptocurrency regulation in Indonesia continues to evolve, covering new aspects of digital asset operations. The transfer of oversight to OJK, the potential classification of certain tokens as securities, and changes in taxation create new conditions for businesses and investors. Companies in this sector must proactively adapt to regulatory requirements to avoid legal risks and operational restrictions. Private users should also consider potential changes in identification procedures, taxation, and the availability of certain assets. Despite tighter regulations, Indonesia's cryptocurrency market remains promising, and the new rules could enhance its transparency and security. Keeping track of regulatory initiatives and adjusting to new requirements will be essential for all market participants.

FAQs

How could regulatory changes affect over-the-counter (OTC) crypto transactions?

If stricter monitoring is introduced, OTC deals may require identity verification and reporting for large transactions. This could reduce anonymity and impose limits on transaction volumes. Market participants should be prepared for potential compliance requirements when conducting private crypto trades.

How might new rules impact cryptocurrency ATMs?

If crypto ATMs are classified under financial services regulations, operators may be required to implement mandatory user verification. This could make digital asset exchanges through ATMs more complicated and limit their availability in public areas. Some operators might shut down services due to compliance costs.

What risks might freelancers face if they receive payments in cryptocurrency?

If tax laws change, crypto earnings from freelance work could be subject to new taxation rules. This might include additional income reporting or mandatory conversion of digital assets into national currency before tax calculation. Freelancers relying on crypto payments should monitor regulatory updates to avoid unexpected obligations.

Could regulations affect cryptocurrency staking?

If yield-generating digital assets are classified as investment instruments, staking may require additional licensing. This could impact staking reward structures and taxation policies. Users should stay updated on regulatory clarifications to understand how potential changes might affect their assets.

Team that worked on the article

Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).