Crypto Assets Enter the PPSK Bill. What are the Implications and Influences for Industry’s Stability?


The Draft Law on the Development and Strengthening of the Financial Sector (RUU PPSK) which is being formulated by Commission XI of the DPR RI aims to create sustainable inclusive and positive economic growth. The PPSK Bill is designed in the Omnibus Law concept which integrates around 16 laws in the financial sector. Crypto assets are proposed to be one of the sectors included in the PPSK Bill as part of the financial sector technological innovation (ITSK). With its development, crypto assets are considered worthy of being one of the future investment instruments. This was also conveyed by Binance CEO Changpeng Zhao at the B20 Summit in Bali, Zhao said “for now 99% of a person’s wealth is still in the form of fiat currency or still using the traditional financial system. However, in the longer term predictions, DeFi and crypto could potentially replace fiat or traditional currencies.” Zhao also sees that “more and more people will migrate to crypto, because in the future about 20 – 30 years it will be much easier to make transactions in the crypto business”. This means that in the future crypto assets will have an important role in helping to improve the global economy.

The regulation and supervision of crypto asset trading are currently regulated by the Commodity Futures Trading Supervisory Agency (Bappebti) so later this will have implications for the regulation and supervision of crypto assets by the Financial Services Authority (OJK) and Bank Indonesia (BI). Meanwhile, in various countries, the regulatory position of crypto assets is classified differently so this should be taken into consideration by the Indonesian government in positioning crypto assets in Indonesia as commodities or financial services/products. For example in Singapore, crypto is not considered a legal means of payment but a digital asset by implementing clear, measurable, and structured regulations in providing legality so that all movements are under government supervision and the safety of consumers is also guaranteed. Similarly in Indonesia, crypto in America is generally considered a commodity. However, several other countries, such as Japan and Australia, consider crypto as property. Meanwhile, in Canada and South Africa, crypto enters the financial sector and is classified into financial products.

Affan Giffari, Managing Partner of Trifida at Law who is also a partner of the Indonesian Blockchain Association (A-B-I), expressed his opinion from a legal perspective. According to him, this “will result in a shift in law which means implications for regulating the crypto industry if the authority that oversees crypto is the OJK so that all stakeholders must prepare themselves to face the new regime and the government needs to consider legal certainty. For business actors so that later they can offer better products varied and competitive to consumers.”

From the business actor’s point of view, Resna Raniadi, Upbit’s Vice President of Operations also responded to this “Basically, by entering crypto assets into the PPSK Bill, the government wants the best for the industry, both for smooth business processes for business actors and for consumer protection. However, what must be emphasized in going forward is that there are no overlapping regulations or communication between government agencies because this ecosystem is still in its infancy so it would be better if the regulations could be made as simple as possible.

Oscar Darmawan, CEO of Indodax believes that the government will study the PPSK Bill very carefully so that later there will be harmonization of laws and regulations that can accommodate the industry’s needs, “the positive side is that it can make industries engaged in crypto not only considered as commodities but as financial institutions that regulated by the OJK,” which can support the development of innovation as long as these regulations can make the crypto ecosystem in Indonesia better and can protect consumers.

Duwi Sudarto Putra, as Co-Founder & COO of hopes that “a monitoring system such as preventing data leaks, increasing financial literacy for investors to the authority to eradicate fraudulent practices under the guise of investment, especially in the crypto industry and all related institutions/authorities in the future must be actively coordinated to provide the best decision for the future of the crypto industry and its consumers in Indonesia.”

A-B-I representing the crypto asset industry players also provided several written inputs to the Indonesian Ministry of Law and Human Rights regarding the PPSK Bill and the Ministry of Finance. Given the nature of crypto assets which basically cover trade and financial aspects, the involvement of various stakeholders including the crypto asset industry is needed in the process of drafting the PPSK Law which broadens the scope of ITSK in Article 202 letter h and expands the financial services sector which is under the authority of the Financial Services Authority (OJK) on Crypto Assets that have risk characteristics as stated in the Elucidation of Part Four of Article 5 letter concerning Amendments to Law Number 21 of 2011. Asih Karnengsih, A-B-I’s Chairwoman said, “So far A-B-I has made a lot of efforts to involve crypto asset industry players in discussions on the Bill PPSK, one of which was in the Public Consultation on the PPSK Bill held by the Ministry of Finance and submission of several proposals to the relevant Ministries and Authorities.” Asih also added, “It would be relevant to look thoroughly and carefully at the conditions of the crypto asset industry (both at national and abroad level) and make appropriate and specific policies. Besides that, in order to maintain the conduciveness of the crypto industry in Indonesia, there is a need for an adequate transition or period of transition for business actors and the relevant government regarding adjustment steps to provide a policy framework to the regulatory landscape that will be authorized by each government agency.

Supporting the view above, the same thing was also conveyed by Plt. Head of CoFTRA, Didid Noordiatmoko, gathered from CNN Indonesia (02/11), Didid admitted that he still supports the government’s decision with a note, crypto remains a commodity, not a currency, “later the government will transfer crypto assets to the OJK, but not immediately when the PPSK Bill is promulgated . So, there is a transition period”. Didid also explained that during the transition period which is expected to last for 5 years, CoFTRA will try to make governance regulations. The goal is so that the crypto ecosystem can remain sustainable even though it later switches to the OJK.

SOURCE Asosiasi Blockchain Indonesia


The CfC St. Moritz Announces Changpeng Zhao, ‘CZ’, as Speaker for Upcoming Conference in 2023


The CfC St. Moritz (Crypto Finance Conference), a highly curated digital assets and blockchain conference for investors and decision-makers, set in the breathtaking scenery of the Swiss Alps, has announced that Changpeng Zhao, ‘CZ’, the co-founder and CEO of Binance, will participate in its upcoming conference as a speaker.

In a fireside chat moderated by Nicolo Stoehr, CEO of the CfC St. Moritz, CZ will address key industry developments and trends, including topics such as regulation, market conditions, the future of crypto, and Binance’s priorities and plans.

Changpeng Zhao ‘CZ’, the co-founder and CEO of Binance, said, “Crypto has had a challenging few weeks. While this may have set us back, we are also in a strong position to see a healthier industry emerge with strong user protections at its core. I’m looking forward to speaking at CfC St. Moritz in January to discuss what next year may hold for crypto.”

Other speakers confirmed for the CfC St. Moritz 2023 include Anthony Scaramucci, former White House Director of Communications; Staci Warden, CEO of The Algorand Foundation; Eswar Prasad, Economist and Professor at Cornell UniversityMeltem Demirors, CSO of CoinShares; Albert Wenger, Partner USV; and Eva Kaili, Vice President of the European Parliament.

The CfC St. Moritz has previously announced the Algorand Foundation as the conference’s premier partner. The Algorand Foundation will support various agenda items at the conference, from bespoke social activations, to a panel discussion on the most important trends for the traditional and digital financial sectors.

Nicolo Stöhr, CEO of the CfC St. Moritz, said, “Since 2018, the CfC St. Moritz has aimed to bring together the most relevant people within blockchain and finance to discuss what lies ahead for these industries. Alongside a host of other high-profile speakers and attendees, CZ’s appearance underscores the role of our conference as the place for key opinion leaders and investors to come together, take stock, and chart a positive course for the future of digital assets and cryptocurrencies.” 

The CfC St. Moritz will take place from January 11th-13th, 2023 in the Suvretta House, nestled in the heart of the Swiss Alps. Each year, the conference brings together 250 carefully selected international investors, family offices, funds, and decision makers from both the traditional and the new world of finance. For three days, high-ranking representatives gather, network, and address the most pressing issues and opportunities in the fields of digital assets, blockchain and traditional finance.




MX Global Sdn. Bhd. (MX Global) today announced an equity investment into the company from Binance, the world’s largest digital asset and blockchain ecosystem. In addition, MX Global also landed another investment for Redeemable Convertible Preference Shares (RCPS) into the company by Cuscapi Berhad, a pioneer digital business solutions provider in Malaysia.

These new capital injections will allow MX Global, a licensed fintech company, to build brand awareness, hire more high-quality talent and develop new features within Malaysia’s regulatory framework.

MX Global is one of the four Recognized Market Operator-Digital Asset Exchange (RMO-DAX) that has been granted full approval by the Securities Commission Malaysia (SC) in July 2021 and complies with the standards and practices to uphold investor protection in conducting safe and secure trading of digital assets in the country. MX Global offers solutions for users to store and trade digital assets under compliant and safe cyber-security environments including a regulated local digital asset exchange.

CEO of MX Global, Dato’ Fadzli Shah said, “MX Global aspires to be the preferred liquidity platform for digital assets locally and internationally. The cooperation of Binance will not only support us in achieving this goal but should also provide the most capital-efficient opportunity for us to align and compete with other global players in the industry. We will continue building a safe, easy and real digital asset ecosystem for our customers.”

With this initial effort to support sustainable growth in the digital asset market in Southeast Asia, Binance hopes to work with regional and local partners to drive further collaborations.

Changpeng Zhao (CZ), Founder and CEO of Binance, said, “We see potential in Malaysia given its respected and innovative digital asset and blockchain community. We believe that partnering with MX Global will be a springboard to new opportunities, both in Malaysia and the region as a whole as well as across the entire digital asset and blockchain ecosystem.”

Speaking on the investment from Cuscapi Berhad, Dato’  Fadzli Shah expressed his excitement in working together with the major digital business solutions provider that holds an extensive list of well-known clients.

“I believe that this cooperation will not only expand the potential services that MX Global can offer in the future, but it will also allow the company to innovate and revolutionize the payment system in Malaysia,” commented Dato’ Fadzli Shah.

Cuscapi Berhad Executive Chairman, Datuk Jayakumar Panneer Selvam stated, “this historic collaboration between digital assets and payment systems will create integration and synergy that will bring together the high potential of the use of digital assets to conduct commerce. With blockchain and smart contracts being increasingly incorporated into our lives, the potential for this will be massive.”

The strategic cooperation further demonstrates the continuous growth and development of the digital assets industry, which will bolster the market in Malaysia and South-East Asia. The investments from two major players, Binance and Cuscapi Berhad, will allow MX Global to venture into a much bigger clientele pool. This will also no doubt propel MX Global to become the major player in the industry.




Binance, the world’s largest crypto and blockchain infrastructure provider, today announced that it has updated its Secure Asset Fund for Users valued at US$1 Billion.

The Secure Asset Fund for Users (SAFU) is an emergency insurance fund that was established by Binance in July 2018 to protect users’ interests. When the fund was established, Binance committed a percentage of trading fees in order to grow it to a sizeable level to safeguard users interests.

Changpeng Zhao (CZ), Founder and CEO of Binance said: “At Binance we always said ‘funds are safe’, and today the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues. Coupled with our state of the art security, we are confident that our user’s interests are well-protected.

CZ added: “Transparency is an important element of building trust, which is why we are publishing our insurance fund wallet address. We call on all centralised exchanges to do the same as it will benefit the entire ecosystem and demonstrate to governments, regulators and important stakeholders our collective commitment to uphold trust, integrity and transparency in the crypto ecosystem.”

When the Secure Asset Fund for Users was first established in 2018, Binance began allocating 10% of all trading fees to provide insurance for potential security breaches. Moving forward, Binance will continue to monitor the size of the SAFU in order to ensure the fund size remains adequate to protect users interests.

The Secure Asset Fund was valued at US$1 billion based on the opening price on January 29, 2022. The value of the fund will fluctuate based on the market.  The Fund can be viewed in two wallet addresses and comprises BNB, BUSD and BTC. The wallet addresses are here and here.


Binance Expands Global KYC Requirements to Further User Protection


Binance, the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider, has today announced the global rollout of its Intermediate Verification requirement for all users.

Intermediate Verification supports Binance’s Know Your Customer (KYC) and Anti-Money Laundering (AML) efforts as part of the organization’s redoubling of efforts to further enhance user protection and risk management protocols.

Changpeng Zhao (CZ), Founder and CEO of Binance, said: “User protection is an integral part of our DNA and core values. Our vision is to create a sustainable ecosystem that is safe for all participants. In the last four years we have laid the groundwork by investing heavily in security and user protection, supporting law enforcement from around the world with high-profile investigations and helping cybercrime victims recover millions of dollars worth of stolen funds.”

“We aim to work more collaboratively with policy-makers to improve global standards and discourage bad actors.”

In the last 30 days, Binance has announced significant investments towards user protection, including (but not limited to) senior compliance appointmentscompliance technology deploymentsTax Reporting Tool launchupdates to leveraged tradingchanges to withdrawal limits and updates to API services.