Indonesia Issues Draft OJK Regulation On Digital Financial Asset Offerings

With the rapid expansion of digital assets in Indonesia and growing market interest in Initial Coin Offerings ("ICOs") and Initial Token Offerings ("ITOs"), the Financial Services Authority (Otoritas Jasa Keuangan or "OJK") has issued a long-anticipated draft regulation that, for the first time, will establish a regulatory framework for the public offering of digital financial assets (Aset Keuangan Digital or "AKD") in Indonesia (the "Draft OJK Regulation").

Until now, AKD activities have been regulated primarily under OJK Regulation No. 27 of 2024 on the Implementation of Digital Financial Asset Trading, which focuses on the supervision and operation of AKD trading activities. The regulation, however, does not extend to the offering or issuance of AKD to the public, leaving a significant gap in the legal framework governing primary-market activities in the digital asset sector. The Draft OJK Regulation aims to address this gap and establish legal certainty for