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

Source: TokocryptoBlog Original Title: RUU P2SK Ancam Industri Kripto Lokal, Apa Isinya? Original Link: The Draft Law on Development and Strengthening of the Financial Sector (RUU P2SK) currently being deliberated by the DPR RI is drawing significant attention from industry players in the crypto sector.

This issue is widely discussed on social media X, with most comments showing opposition. Data records about 76% of sentiments towards this draft being negative.

Although its aim is to create a conducive economic environment, this bill is criticized by crypto industry actors because in one of its revisions, it is considered contrary to the core of the crypto decentralization spirit, threatens the local crypto industry, and could potentially trigger a wave of mass layoffs.

What is RUU P2SK?

RUU P2SK is a revision of the Draft Law No. 4 of 2023 concerning Development and Strengthening of the Financial Sector or abbreviated as UU P2SK.

This draft law is currently being discussed by the DPR RI to align with the Constitutional Court (MK) rulings No. 59/PUU-XXI/2023 and No. 85/PUU-XXII/2024, as well as 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 of the DPR from the Gerindra Faction, Mohammad Hekal, the discussion and formation of the special committee (panja) for the amendments to UU P2SK have been ongoing since January 2025.

The revision includes 16 main points, including strengthening the supervision of the crypto industry, which has been under OJK since January 2025.

Contents of the Revision Related to Crypto

Through this draft revision, crypto assets will be classified as part of Financial Sector Technology Innovation (ITSK) under the supervision of OJK, with Crypto Asset Financial Services Institutions (LJK Aset Kripto) responsible for digital financial activities related to crypto assets.

In addition to these new rules, several key articles have drawn attention:

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 wallets, must be transacted through and reported to the exchange.

This means that every user who wants to conduct crypto asset transactions must do so via official exchanges and report it to the exchange. Digital activities performed from crypto wallets, such as DeFi activities, Airdrops, meme coin trading through certain platforms, and others, must also be reported to official exchanges.

This aims to ensure centralized supervision but faces criticism for potentially threatening Web3 decentralization.

Articles 215C and 312A

Articles 215C and 312A in the RUU P2SK are the most scrutinized by industry players, including investors and exchanges. The reason is that these articles are considered capable of making all crypto trading centralized under a single exchange.

The new draft regulation states in Article 215C point 9 that crypto exchanges must have or control the digital financial asset trading system, including crypto assets and derivatives.

This article is believed to potentially eliminate the role of Digital Financial Asset Traders (PAKD)—or commonly known as exchanges—and centralize all trading activities under the control of a single exchange. As a result, the roles of existing exchanges in Indonesia could be fully taken over, leading to possible layoffs.

The Vice Chairman of the Indonesian Blockchain Association (ABI) William Sutanto also believes that if these regulations are implemented, “layoffs may be unavoidable.”

Following these regulations, Article 312A point C explains that there will be a transition period of two years until official exchanges can conduct all digital asset trades, including matching buy and sell offers. After this period, crypto trading outside official exchanges will no longer be permitted.

Potential Impact on the Local Crypto Industry

According to one of the main directors involved in the Digital Crypto Asset Traders (PAKD), Hamdi Hassyarbaini, these rules are still open to interpretation, and he sees three main possibilities:

• First, exchanges only manage the trading of digital assets whose initial offerings are conducted in Indonesia.
• Second, exchanges regulate all trading, while PAKD only functions as a broker.
• Third, all trading is conducted directly by exchanges without any role for PAKD.

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 its primary role as independent exchanges. It could also lead to monopoly by exchanges, loss of arbitrage potential, and layoffs.

Additionally, security risks increase because all digital assets are concentrated in a single point. This creates a potential Single Point of Failure, where a single failure could cripple the entire system.

Amid this turmoil, the CEO of one local exchange expressed high hopes that all parties can engage in open dialogue so that the policies being formulated can continue to support the domestic crypto industry.

“We understand that this bill revision aims to strengthen the national financial sector, including the digital asset industry. However, it is important for all parties to ensure that these policies continue to foster innovation and do not kill local actors who have contributed to building the crypto ecosystem in Indonesia.”

Development of RUU P2SK

As of December 2025, the draft Law on Development and Strengthening of the Financial Sector (RUU P2SK) is still in the harmonization stage.

With the status still in harmonization, it means the final rules regarding digital asset trading, including the controversial articles such as 215C and 312A, have not yet been officially established.

In addition, the public can also participate directly by submitting suggestions for the RUU P2SK through the official DPR website by entering the “Participation” tab or by sending input via available communication channels.