In a speech commemorating the 22nd anniversary of the National Campaign to Combat Money Laundering and Terrorist Financing, Mr. President highlighted a worrying trend: the increasing use of digital assets, particularly cryptocurrencies and NFTs, for money laundering. In response to this difficulty, he called on the Financial Transaction Reporting and Analysis Center (PPATK) to strengthen supervision.
Urgent need for vigilance and regulation
President Widodo responded to these disturbing figures by stressing the importance of taking swift action to stop money laundering through various financial instruments. He emphasized that people should pay attention to digital assets, market activities, electronic currencies, and artificial intelligence-driven cryptocurrency and NFT transactions. To prevent more financial crime, he urged regulators around the world to stay ahead of money laundering.
Mahendra Siregar, chairman of the Financial Services Authority Board (OJK), echoed Widodo’s concerns, promising to take necessary action. He mentioned plans to transfer cryptocurrency regulation to the OJK by January 2025, in line with Law No. 4 of 2023.
Government’s new stance on cryptocurrencies
The upcoming change in presidential leadership demonstrates Indonesia’s continued focus on cryptocurrency regulation. Newly elected President Prabowo Subianto and Vice President Gibran Rakabuming Raka have publicly expressed their interest in blockchain and cryptocurrencies. During his campaign, President Widodo’s son Gibran emphasized the importance of cryptocurrency expertise to technological advancement.
With Prabowo and Gibran scheduled to officially take office on October 20, 2024, Indonesia expects further developments in cryptocurrency regulation and enforcement. The new leadership’s commitment to improving tax compliance oversight of cryptoassets signals a proactive approach to addressing regulatory challenges in the digital asset space.
final thoughts
President Widodo’s warning highlights the growing importance of a strong regulatory framework to combat money laundering in the rapidly evolving digital asset sector. The upcoming leadership change provides an opportunity to strengthen Indonesia’s stance on cryptocurrency regulation, ensuring transparency and integrity in financial transactions.
