Indonesia plans to implement fresh tax regulations on cryptocurrency starting August 2025, reclassifying digital assets as financial instruments. The regulatory authority is shifting from Bappebti to the Financial Services Authority, marking a significant overhaul in oversight and licensing.

The upcoming tax increase on crypto transactions aims to boost government revenue, but risks discouraging retail investors due to higher costs. OJK Chair Mahendra Siregar emphasises that the new framework aligns cryptocurrencies with broader financial regulations.

The allowlist of tradable digital assets will nearly double, expanding market opportunities amid the changing landscape.

Fintech startups face challenges adapting to stricter rules and rising operational expenses, potentially disadvantaging them compared to regional competitors like Singapore and Hong Kong.

While retail investors may find initial barriers, more straightforward rules and regulatory sandboxes could foster long-term stability and innovation. Indonesia's approach will require a careful balance between encouraging growth and ensuring oversight.