The P2SK Bill Threatens the Local Crypto Industry, What's Inside?

Source: TokocryptoBlog Original Title: RUU P2SK Threatens the Local Crypto Industry, What’s Inside? Original Link:

Background of RUU P2SK

The Financial Sector Development and Strengthening Bill (RUU P2SK) currently being discussed by the Indonesian House of Representatives (DPR RI) is under heavy scrutiny from players in the crypto industry. The issue is widely discussed on social media, with the majority of comments expressing rejection. Data collected shows that around 76% of sentiment towards this bill is negative.

Although its intention is to create a conducive economic environment, this bill is drawing criticism from crypto industry players because, in one of its revisions, it is considered to contradict the core spirit of crypto decentralization, threatens the local crypto industry, and is even deemed to potentially trigger a massive wave of layoffs.

What is RUU P2SK?

RUU P2SK is a revision of Law No. 4 of 2023 on Financial Sector Development and Strengthening, abbreviated as UU P2SK. This bill is being discussed by the DPR RI to adjust to Constitutional Court Decisions No.59/PUU-XXI/2023 and No.85/PUU-XXII/2024, and to strengthen the independence of institutions such as Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

According to Deputy Chair of Commission XI DPR from the Gerindra faction, Mohammad Hekal, discussions and the formation of a working committee for the amendment of UU P2SK have been ongoing since January 2025. In it, this revision covers 16 main topics, including the strengthening of crypto industry supervision, which as of January 2025 is under the OJK.

Contents of the Revision Related to Crypto

According to the draft revision, crypto assets will be placed as part of Financial Sector Technology Innovation (ITSK) under OJK supervision, with the Crypto Asset Financial Services Institution (LJK Aset Kripto) to conduct digital financial sector activities related to crypto assets.

Article 215A Paragraph (4)

The revision of Article 215A paragraph (4) states: All ITSK activities related to digital financial assets, including crypto assets, conducted by digital crypto asset wallets, must be transacted through and reported to the exchange.

In this revision, it means that every user who wants to transact crypto assets must do so through an official exchange and report it to the exchange. In this case, digital activities carried out from crypto wallets such as DeFi activities, airdrops, meme coin trading on certain platforms, and so on must also be reported to the official exchange. This aims to ensure centralized supervision, but has drawn criticism because it potentially threatens Web3 decentralization.

Article 215C and Article 312A

Articles 215C and 312A in the RUU P2SK are the most highlighted articles by crypto industry players, both investors and exchanges. The reason is that these articles are considered to potentially centralize all crypto trading under the control of one exchange.

The contents of the new rule draft, Article 215C point 9, state that the crypto exchange must own or control the system for conducting digital financial asset trading, including crypto assets and derivatives. This article is considered to potentially eliminate the role of Digital Financial Asset Traders (PAKD), commonly known as exchanges, and centralize all trading activities under the exchange’s control. As a result, the role of existing exchanges in Indonesia could be completely taken over by the exchange, which may trigger a wave of layoffs.

The Vice Chairman of the Indonesian Blockchain Association (ABI), William Sutanto, also believes that if this rule is truly implemented, “Layoffs may be inevitable.”

Following the draft regulation, Article 312A point C explains that there will be a two-year transition period until the official exchange can facilitate all digital asset trading, including matching buy and sell orders. After that period, crypto trading outside the official exchange will no longer be permitted.

Potential Impact on the Local Crypto Industry

According to one of the CEOs in the Digital Crypto Asset Traders (PAKD), Hamdi Hassyarbaini, this regulation is still open to multiple interpretations, and in his view, there are three main possibilities:

• First, the exchange only manages digital asset trading whose initial offering is conducted in Indonesia.
• Second, the exchange regulates all trading, while PAKD only serves as a broker.
• Third, all trading is conducted directly by the exchange without any role for PAKD whatsoever.

The most feared are the second and third possibilities, where the Indonesian crypto industry, which includes 25 licensed Digital Crypto Asset Traders (PAKD), risks losing their main role as independent exchanges. This could also result in a monopoly by the exchange, loss of arbitrage opportunities, and trigger layoffs.

In addition, security risks also increase as all digital assets become concentrated in one place. This creates the potential for a Single Point of Failure, where a single failure could cripple the entire system.

Amidst this turmoil, the CEO of a local exchange expressed great hope that all parties can engage in open dialogue so that the policy being formulated can continue to promote the domestic crypto industry. “We understand that this legal revision is intended to strengthen the national financial sector, including the digital asset industry. However, it is important for all parties to ensure that this policy continues to encourage innovation and does not kill off local players who have contributed to building the crypto ecosystem in Indonesia.”

Progress of RUU P2SK

As of December 2025, the Financial Sector Development and Strengthening Bill (RUU P2SK) is still in the harmonization stage. With its status still in harmonization, it means that the final rules regarding digital asset trading, including controversial articles like 215C and 312A, have not been officially established.

In addition, the public can also participate directly by providing suggestions for the RUU P2SK through the official DPR website by going to the “Participation” tab or sending input via the provided email address.