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| Foto: Instagram/gabriela Rey |
VISTORBELITUNG.COM,Indonesia’s crypto landscape, once buzzing with the potential of a digital gold rush, is now shrouded in uncertainty and concern. At the heart of the turmoil lies the recently enacted Government Regulation in Lieu of Law (Perppu) No. 4 of 2023, which has been transformed into Law No. 4 of 2024 concerning the Development and Strengthening of the Financial Sector (UU P2SK). While aimed at creating a more robust and integrated financial system, a prominent industry voice, Gabriel Rey, Partner at a leading venture capital firm, warns that the law’s crypto provisions are having a chilling effect on local investors and may trigger a "storm of layoffs" within the sector.
The UU P2SK formally brings crypto assets under the regulatory umbrella of the Financial Services Authority (OJK), transferring oversight from the Commodity Futures Trading Regulatory Agency (Bappebti). This shift is intended to provide stronger investor protection and integrate digital assets into the mainstream financial framework.
However, Gabriel Rey argues that the transition period and specific requirements are creating significant barriers. The law mandates that all crypto asset trading must be conducted through a national crypto exchange. While this aims to centralize and secure transactions, the practical implementation has been slow, creating a regulatory limbo.
"The intent to protect consumers is noble," Rey stated in a recent industry discussion, "but the current ambiguity and restrictive framework are inadvertently penalizing the very investors and innovators we need to foster. Local retail investors, who were actively participating in a global market, now face confusion and limited options. The vibrancy of community-driven investment and education is being stifled."
Chilling Effect on Local Investment and Innovation
Rey highlights several key issues:
1. Reduced Access and Liquidity: The requirement to funnel all trading through a single, nascent national exchange could limit access to the global liquidity and variety of assets available on established international platforms. This puts local investors at a disadvantage.
2. Innovation Drain: Startups and projects built on blockchain technology may find the regulatory environment too cumbersome or restrictive. This could lead to a "brain drain," where talented Indonesian developers and entrepreneurs seek opportunities in more crypto-friendly jurisdictions like Singapore or Dubai.
3. Erosion of Competitive Edge: Indonesia was positioning itself as a potential hub for Web3 innovation in Southeast Asia. Rey fears that over-regulation without clear, supportive guidelines will cause the country to fall behind its regional rivals.
The Impending "Layoff Storm"
Beyond investor sentiment, Rey points to a more immediate and dire consequence: massive job losses. The domestic crypto industry, which includes not only exchanges but also wallet providers, blockchain analytics firms, educational platforms, and countless content creators, has grown significantly over the past few years.
"The sector has been a major employer for tech talent," Rey explains. "With trading volumes potentially plummeting due to investor hesitation and the operational burden of compliance increasing, companies are being forced to make hard decisions. We are already seeing hiring freezes, and I fear a storm of layoffs is imminent if the regulatory path does not become clearer and more supportive of growth."
A Call for Collaborative Clarity
The industry’s plea is not for a lawless environment. Instead, figures like Gabriel Rey are calling for more nuanced and collaborative regulation. They urge the OJK to engage in deep dialogue with industry participants to design rules that protect consumers without suffocating innovation.
Key requests include:
· Clear and timely guidelines for the operationalization of the national crypto exchange.
· A phased approach to regulation that allows the industry to adapt.
· Recognizing the global nature of crypto assets and ensuring regulations do not isolate Indonesian investors from the wider ecosystem.
The UU P2SK represents a critical crossroads for Indonesia's digital asset future. While its goals of stability and consumer protection are essential, the current implementation risks derailing a dynamic sector. As Gabriel Rey warns, the unintended consequences discouraged local investors, stifled innovation, and widespread job losses could be severe. The hope now lies in regulators and industry leaders working together to refine the framework, ensuring that Indonesia can harness the transformative potential of crypto assets rather than being left behind in the evolving global financial landscape. The coming months will be crucial in determining whether the law becomes a foundation for growth or an anchor holding the industry back.