How can OJK’s new regulation add more transparency in crypto ads?

Rumours around Indonesia’s Financial Services Authority (OJK) taking over the crypto oversight has been circulating amongst the tech and finance industry since 2022, with several crypto players reportedly being involved in the discussions with the regulator. 

Late December 2024, the rumours proved to be a reality with the introduction of POJK No. 27/2024, transferring oversight of cryptocurrencies from the Commodity Futures Trading Regulatory Agency (Bappebti) to OJK.

In a statement, OJK said that it’s still in the process of transition of the oversight transfer, which will require three steps: soft landing, strengthening, and development.

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“OJK encourages consumers and potential consumers of digital financial assets, including crypto assets, to have a good understanding of the risks associated with digital financial assets as a consideration when conducting transactions,” it added.

The move sent ripples through Indonesia’s crypto and related advertising industries, with many expecting the oversight by OJK to help enhance transparency in communication in a rather convoluted and emerging space. OJK has also called for an “active role” of exchanges to improve consumer literacy. From 2013 to 2024, Indonesians’ financial literacy index has increased from 21.84% to 65.43%.

Unlike established markets such as Singapore, which has stricter rules around public advertising for crypto services, Indonesia has historically been less stringent in regulating such promotions.

Industry players MARKETING-INTERACTIVE spoke to also said that with the move, creativity needs to align with strict compliance and the “flashy, speculative” campaigns that once dominated the crypto space may soon be relics of the past.

Imelda Megadihas, lead of client strategy at mobile OEM advertising firm AVOW, shared on a LinkedIn post that with stricter rules on transparency, advertisers must craft campaigns that clearly communicate risks and avoid misleading promises.

“Influencers and content creators will also face higher accountability, especially when promoting high-risk investments,” Megadihas added. Megadihas said that an ideal crypto campaign under the tighter standards set by OJK should focus on educational and demystifying content about cryptocurrencies.

David Yin, a partner at GSR Ventures, told MARKETING-INTERACTIVE that an oversight by OJK provides a more transparent and comprehensive regulatory environment. 

“While this could introduce more regulatory requirements for crypto companies, it also provides them a clearer regulatory framework to innovate and partner with financial players,” he said.

The initiatives involving the sandbox and digital innovation center will support crypto companies in developing and testing innovative, cutting-edge products for the local market, while also enabling collaborations with major financial institutions, he said.

 “OJK will likely focus on stronger consumer protection and KYC/AML (Know Your Customer/Anti-Money Laundering), which is healthy for the ecosystem’s long-term development,” Yin concluded. 

Meanwhile, industry players have welcomed the regulation.

Tokocrypto, one of the largest in the market, acknowledged that the policy will support the development of the crypto industry, saying they are still conducting in-depth studies on the regulation.

“Certainly, with the transition from Bappebti to OJK, we will adjust all our SOPs to comply with OJK’s regulations. From a marketing perspective, we will also make changes to our SOPs, strategies, and content to align with them,” a spokesperson told MARKETING-INTERACTIVE.

MARKETING-INTERACTIVE has reached out to Pintu, another major player in the country, who declined to participate in the story.

Over the years, Indonesia has been monitoring and enhancing the booming financial services industry with increasingly tightened regulations, including those for crypto and online lending.

In September 2022, Bappebti was looking to increase paid-up capital for crypto trading platforms from IDR 50 billion (US$3.1 million) to IDR 100 billion (US$6.2 million) after it stopped issuing new registration certificates for prospective exchanges.

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