Indonesian Crypto Exchanges at Risk as P2SK Bill Revision Looms—Centralization Sparks Concern
Indonesia’s crypto industry faces a pivotal moment. The revised Financial Sector Development and Strengthening Law (P2SK) now explicitly regulates crypto under OJK oversight—a first-time formal recognition of digital assets as part of the national financial system.
The draft introduces Crypto Asset Financial Service Institutions (LJK Aset Kripto), covering exchanges, custodians, and digital asset traders. Crucially, Article 215A(4) mandates: all crypto transactions must be executed and reported through licensed exchanges. Off-exchange trading—including P2P or wallet-to-wallet transfers—is prohibited unless still reported to the official exchange.
Harsh penalties apply: unauthorized operations risk 10 years in prison and fines up to Rp1 trillion. A two-year transition period is granted before full enforcement.
Parliament frames this as state recognition of crypto. Yet industry players warn: the clause risks erasing 25+ licensed Digital Asset Trading Entities (PAKD) operating since 2013.
Hamdi Hassyarbaini of Sentra Bitwewe calls the article open to dangerous misinterpretation, potentially invalidating PAKD business models. Indodax CEO William Sutanto warns: “Mass layoffs are inevitable if traders lose their core function.”
Triv’s Gabriel Rey adds: concentrating trade into one exchange creates a single point of failure—if the central system halts, Indonesia’s entire crypto market freezes. He also flags the loss of arbitrage opportunities and a likely exodus to unregulated global platforms.
Tokocrypto’s Calvin Kizana urges constructive dialogue: regulation must protect and empower local players who’ve built the ecosystem for over a decade.
VECS Commentary
The P2SK revision is both recognition and threat. While formalization boosts long-term trust, over-centralization risks stifling innovation, costing jobs, and fueling regulatory arbitrage offshore. What’s needed isn’t a single exchange—but a regulatorily decentralized framework: strict standards, PAKD interoperability, and support for local champions. Without it, Indonesia won’t strengthen digital sovereignty—it’ll surrender it to a handful of gatekeepers.
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**This news was obtained and summarized from various sources on the internet.