NFTs
Indonesian President Joko Widodo warns about money laundering through crypto and NFTs
Indonesian President Joko Widodo warned the Financial Transaction Reporting and Analysis Center (PPATK) to monitor the use of cryptocurrencies and non-fungible tokens (NFTs) for money laundering during a speech last Wednesday on the 22nd anniversary of the National Anti-Money Laundering Movement and Prevention of Terrorist Financing at the State Palace, Jakarta.
The president said he was aware of signs of money laundering through crypto assets worth $8.6 billion (139 trillion IDR) in 2021, referring to data from the 2022 Crypto Crime Report Chainanalysis,
“This amount, equivalent to 139 billion rupiah worldwide, is not just large – it is extremely large,” Widodo said during his speech. Otherwise, we will continually fall behind,” he added.
In addition to cryptocurrencies and NFTs, the president – who is affectionately called “Jokowi” – also highlighted the need to monitor other potential tools for money laundering, including virtual assets, market activities, electronic money and AI-based transactions. .
Responding to the president’s directive, Mahendra Siregar, chairman of the Board of Commissioners of the Financial Services Authority (OJK), said his agency would oversee these concerns when crypto regulation passes to the OJK next year.
“In due course, as members of the Anti-Money Laundering and Terror Financing Team, we will have the authority to monitor these issues, including whether their use overlaps with services from other financial institutions,” Mahendra said. he said on Wednesday to reporters during a press conference.
Currently, crypto assets in Indonesia are considered commodities and are regulated by the Commodity Futures Trading Regulatory Agency (Bappebti). According to Law number 4 of 2023, supervision of cryptoassets will be transferred to the Financial Services Authority (OJK) in January 2025.
In terms of government support, Indonesia’s new leadership shows a clear stance on crypto. In the February 2024 elections, the newly elected The president and vice president, Prabowo Subianto and Gibran Rakabuming Raka, have openly expressed a strong interest in cryptography.
Gibran, son of current President Widodo, openly emphasized that Indonesia needs blockchain and cryptography experts to promote the country’s technology sector during the election campaign, while Prabowo and Gibran’s national campaign vice-chair Erwin Aksa, previously mentioned that Prabowo and Gibran will improve tax compliance oversight for crypto assets as many are non-compliant in tax filing. Prabowo and Gibran’s official opening is scheduled for October 20, 2024.
Editor’s note: Joko Widodo and Mahendra Siregar’s comments were translated from Indonesian.