In Indonesia, cryptocurrencies are classified as securities

Indonesia has enacted the Financial Sector Development and Strengthening Law, which notably provides for changes to cryptocurrency regulation. CoinDesk reports.

On January 12, the document was signed by President Joko Widodo. Under the new rules, supervision of the digital asset industry will be transferred to the Financial Services Authority without the participation of the Commodity Futures Trading Agency.

This adjustment signals a shift in regulators’ approach to oversight of the sector — authorities will start treating cryptocurrencies as securities, rather than as exchange-traded commodities.

“We must recognise that this shift demonstrates the regulator’s good understanding that crypto assets are more than just trading,” said Asih Karnengsih, chair of the local blockchain association, in a statement to the publication.

In his view, the transfer of powers could take some time. However, it would avoid abrupt changes for the local community.

Earlier, Jump Capital analysts included Indonesia among the most promising jurisdictions for cryptocurrencies.

Since May 2022, has been levied VAT on digital asset transactions and capital gains tax on such investments at rates of 0.1% in both cases. Legislation prohibits using them as a means of payment.

In September, Indonesian authorities announced the launch of a platform for trading cryptocurrencies.