Muhammad Ghafur Fadillah, Jakarta – The Financial Services Authority (OJK) is evaluating the implementation of a Single Investor Identification (SID) system for cryptocurrency owners, which could conflict with the decentralized nature of crypto.
SID would enable regulators to track and monitor individual investors, potentially enhancing transparency in crypto transactions. This could improve market safety by helping to prevent fraud or money laundering through verified identities. However, the decentralized structure of crypto, where transactions are conducted without centralized oversight, may create tension between regulatory goals and decentralization principles.
Hasan Fawzi, Head of OJK's Financial Technology, Digital Assets, and Crypto Assets Supervision, said that SID could boost transparency and security in crypto transactions. Already successfully used in capital markets, SID is seen as vital for promoting transparency, integrity, and efficiency in investor identification and crypto trading.
Despite this, Fawzi acknowledged the unique challenges posed by blockchain's decentralized nature. He stressed that while SID could enhance market oversight, its implementation must be balanced to avoid compromising the core principles of decentralization.
Blockchain enables transactions without third-party or regulatory involvement, and Fawzi clarified that OJK's role would be to ensure market security, fairness, and efficiency, not to eliminate decentralization.
Currently, the OJK and Bank Indonesia (BI) oversee crypto trading, a shift from the previous oversight by the Commodity Futures Trading Regulatory Agency (Bappebti) under the Trade Ministry.
SID, which is already in use in the capital markets, is a unique identity issued by the Indonesian Central Securities Depository (KSEI) that includes personal data, securities account numbers, and other relevant information, integrated on a single platform. SID ensures centralized monitoring and prevents an investor from holding multiple identities.
Source: https://jakartaglobe.id/business/ojk-seeks-to-regulate-crypto-holders-with-id-syste