Indonesia regulator bans trading firms from issuing certain financial products

The Financial Services Authority (Otoritas Jasa Keuangan) has prohibited Indonesian firms in the capital market industry from marketing, promoting, and advertising financial products and services that have not received regulatory approval, such as offshore products, crypto assets, and gold.

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The move could affect multiasset trading platforms like Ajaib that have launched crypto assets on top of their stock business. In Indonesia, stock trading is regulated by OJK, while the crypto market is under the supervision of the Commodity Futures Trading Regulatory Agency.

OJK said the latest regulation is aimed at improving consumer protection and preventing the public from being misled about which financial products are under its authority. Many integrated platforms also offer investment products such as stocks and bonds issued by entities overseas, which are not “licensed and supervised by OJK,” said Hoesen, the agency’s executive head of the capital market, in a statement.

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OJK also demands that companies develop a separate app, platform, or website for products and services that are not under its regulatory supervision.

Previously, OJK had issued guidelines for consumer and community protection detailing the norms and procedures for the marketing, promotion, and advertising of businesses in the capital market.