Quick Answer
Yes, cryptocurrency is legal to trade as a financial asset.
- It is regulated by the Financial Services Authority (OJK).
- Using crypto for payments is illegal.
Legal Status of Crypto in Indonesia
In Indonesia, cryptocurrency occupies a dual legal status: it is legal to trade as a regulated digital financial asset but remains illegal to use as a means of payment. This distinction exists because the country's Currency Law exclusively recognizes the rupiah as legal tender, while recent regulatory changes have formally classified crypto as a financial instrument. Oversight for these assets has transitioned to the Financial Services Authority (OJK), which now mandates strict compliance with its new regulations, including consumer protection and anti-money laundering rules.
Current Regulations
As of January 10, 2025, regulatory authority over crypto assets shifted from the Commodity Futures Trading Regulatory Agency (BAPPEBTI) to the Financial Services Authority (OJK). Under the new framework, OJK Regulation No. 27 of 2024, crypto is classified as a digital financial asset, and businesses must comply with updated rules on capital, consumer protection, and anti-money laundering by July 2025. While legal to trade, cryptocurrencies remain banned as a payment instrument, a restriction rooted in the country's Currency Law which upholds the rupiah as the sole legal tender.
Regulatory Authorities
Several key regulatory bodies oversee Indonesia's evolving crypto landscape, each with distinct responsibilities.
- Financial Services Authority (OJK): As of January 2025, the OJK is the primary regulator supervising crypto as a digital financial asset. It is responsible for all activities from trading to settlement, focusing on market integrity, consumer protection, and anti-money laundering measures.
- Bank Indonesia (BI): As the nation's central bank, BI enforces the Currency Law, which establishes the rupiah as the only legal tender and prohibits the use of crypto for payments. The industry is currently lobbying BI for the legal recognition of stablecoins to facilitate transactions.
- Commodity Futures Trading Regulatory Agency (BAPPEBTI): This agency was the original regulator that classified and oversaw crypto as a tradable commodity. Its authority was officially transferred to the OJK to align crypto supervision with the broader financial services sector.
Historical Context
Indonesia's crypto regulation began with a dual policy: banning crypto for payments while allowing it to be traded as a commodity under the Commodity Futures Trading Regulatory Agency (BAPPEBTI). This initial framework required AML/CFT compliance and established a list of approved tradable assets. A major policy shift occurred on January 10, 2025, when oversight transferred to the Financial Services Authority (OJK), which reclassified crypto as a "digital financial asset." This change integrated crypto into the formal financial sector, imposing stricter capital and consumer protection rules. While trading is now more formalized, industry players continue to push for the legal recognition of stablecoins for payments.
Compliance Requirements for Businesses in Indonesia
Under the new regulatory framework led by the OJK, crypto businesses in Indonesia must adhere to several key compliance requirements outlined in government guidance:
- Anti-Money Laundering (AML): OJK Regulation No. 27 of 2024 mandates that operators implement AML measures. For instance, the paid-up capital for Crypto Asset Traders cannot originate from money laundering or terrorism financing.
- Know Your Customer (KYC): While specific KYC procedures are not explicitly detailed, they are strongly implied. Regulations require businesses to implement robust consumer and personal data protection measures, which are foundational to standard financial practices.
- Capital Requirements: Crypto Asset Traders must meet a minimum paid-up capital of IDR 100 billion and maintain a minimum equity of IDR 50 billion. The OJK can also demand additional capital based on a firm’s systemic impact.
- Licensing and Reporting: All Digital Financial Asset Trading Operators must obtain a license from the OJK and submit both periodic and incidental reports to the authority.
- Compliance Deadline: Existing businesses have a transition period to meet all new obligations, with a deadline for full compliance with OJK Regulation No. 27/2024 set for July 2025.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border payments, Indonesia's regulations create a significant bottleneck. The outright ban on using crypto for payments means companies cannot leverage digital assets for fast, low-cost international settlements, forcing them back to slower and more expensive traditional banking channels. Furthermore, the stringent OJK compliance framework, while legitimizing the industry, introduces substantial operational costs and complexities for international firms looking to transact with or operate in the Indonesian market.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payments network, the "Money Grid," built on Bitcoin for instant, low-cost money movement. Its core products, Lightspark Connect and Grid Switch, offer two ways to access this network. Lightspark Connect gives businesses direct access to the Lightning Network, managing complex infrastructure like node management and liquidity. Grid Switch is designed for regulated institutions, using domestic real-time payment systems to facilitate cross-border fiat transfers, bypassing slow and expensive traditional rails without requiring direct crypto handling.
For regulated entities navigating frameworks like Indonesia's OJK rules, Lightspark's platform facilitates compliance. Grid Switch allows institutions to leverage the network's speed without violating local prohibitions on crypto payments. Features like built-in compliance screenings and audit-ready reporting provide the tools for regulated institutions to integrate modern payment rails while adhering to their legal and security obligations.
To learn more about how Lightspark enables compliant, instant cross-border payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
FAQs
Are crypto profits taxed in Indonesia?
Yes, profits from cryptocurrency trading are subject to both a final income tax on capital gains and a value-added tax (VAT) on transactions. These taxes were introduced to formalize the digital asset market and generate state revenue.
Can I trade any cryptocurrency in Indonesia?
No, only cryptocurrencies on the official list approved by the Financial Services Authority (OJK) are legal to trade on local exchanges. This list is periodically reviewed to ensure the assets meet specific security and utility criteria.
What is the legal status of crypto mining in Indonesia?
Indonesian regulations do not explicitly address the legality of cryptocurrency mining, leaving it in a legal gray area. However, any income derived from mining activities is generally considered taxable income.
Sources
- Freeman Law. "Indonesia and Cryptocurrency." Freeman Law, 2022, freemanlaw.com/cryptocurrency/indonesia/.
- Indonesia Financial Services Authority. "OJK Regulation (POJK) Number 27 of 2024 (POJK 27/2024) concerning the Implementation of Digital Financial Asset Trading, Including Cryptocurrency." Otoritas Jasa Keuangan, 24 Dec. 2024, www.ojk.go.id/id/regulasi/Pages/POJK-27-2024-AKD-AK.aspx.
- Isaac, Julian. "Crypto Industry Asks Regulators to Recognize Stablecoin as Legal under Indonesian Law." Indonesia Business Post, 22 Aug. 2025, indonesiabusinesspost.com/5058/markets-and-finance/crypto-industry-asks-regulators-to-recognize-stablecoin-as-legal-under-indonesian-law.
- SSEK Law Firm. "From Bappebti to OJK: Indonesia’s Crypto Regulation Just Changed." SSEK Law Firm, 7 Feb. 2025, ssek.com/blog/from-bappebti-to-ojk-indonesias-crypto-regulation-just-changed/.
