# Daily Vecsignal 56 - Indonesian Crypto Exchanges Threatened by P2SK Law Revision, Risks Loom.

By [VECS Smartframe](https://paragraph.com/@vecsmartframe) · 2025-12-06

news, vecsian, crypto, exchange, indonesia, law, revision, information, regulation, governance, investment, bitcoin, finance, economy

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**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.

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*Originally published on [VECS Smartframe](https://paragraph.com/@vecsmartframe/daily-vecsignal-56)*