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: The Draft Law on the Development and Strengthening of the Financial Sector (RUU P2SK), which is currently being deliberated by the Indonesian House of Representatives (DPR RI), is under major scrutiny among crypto industry players.

This issue is widely discussed on social media X, with the majority of comments expressing rejection. Data shows that around 76% of sentiment towards this draft is negative.

Although its goal is intended to create a conducive economic environment, this bill is actually drawing criticism from crypto industry players because in one of its revisions it is considered contrary to the essence of crypto decentralization, threatens the local crypto industry, and is even seen as potentially triggering a wave of mass layoffs.

What is RUU P2SK?

RUU P2SK is a revision of Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector, abbreviated as the P2SK Law.

This draft law is being discussed by the DPR RI to align with the Constitutional Court decisions (MK) 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), Financial Services Authority (OJK), and Deposit Insurance Corporation (LPS).

According to Deputy Chairman of Commission XI DPR from the Gerindra faction, Mohammad Hekal, the discussion and formation of the working committee for the amendment of the P2SK Law has been ongoing since January 2025.

Within it, the revision covers 16 main topics, including the strengthening of crypto industry supervision, which as of January 2025 falls under the OJK.

Revision Content Related to Crypto

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

In addition to these new regulations, there are several key articles under the spotlight:

Article 215A paragraph (4)

The revision of Article 215A paragraph (4) reads: 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 conducted from crypto wallets such as DeFi activities, Airdrops, meme coin trading via PumpFun, and so on must also be reported to the official exchange.

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

Article 215C and Article 312A

Articles 215C and 312A in RUU P2SK are the most highlighted 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 a single exchange.

The new draft regulation, Article 215C point 9, states that the crypto exchange must own or control the system for conducting digital financial asset trading, including crypto assets and derivatives.

This article is predicted to potentially eliminate the role of Digital Financial Asset Traders (PAKD), commonly known as exchanges, and centralize all trading activity under the exchange’s control. As a result, the role of exchanges in Indonesia could be completely taken over by the exchange, potentially triggering a wave of layoffs.

Deputy Chairman of the Indonesian Blockchain Association (ABI), William Sutanto, also believes that if this regulation is truly implemented, “layoffs may be unavoidable.”

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

Potential Impact on the Local Crypto Industry

According to one CEO of a registered Digital Crypto Asset Trader (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 takes place in Indonesia.
• Second, the exchange regulates all trading, while PAKD only functions as a broker.
• Third, all trading is conducted directly by the exchange without any role for PAKD at all.

The most feared are the second and third possibilities, where Indonesia’s crypto industry, which includes 25 licensed Digital Crypto Asset Traders (PAKD), risks losing its primary role as independent exchanges. It could also result in an exchange monopoly, loss of arbitrage potential, and trigger layoffs.

In addition, security risks also increase because all digital assets are concentrated at a single point. This condition creates the potential for a Single Point of Failure, meaning that if there is one failure, it could cripple the entire system.

The CEO of a local exchange expressed hope that all parties can engage in open dialogue so that the policies being formulated can continue to drive the domestic crypto industry.

“We understand that the amendment of this law 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.”

RUU P2SK Developments

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

With its status still at the harmonization stage, it means the final regulations on digital asset trading, including controversial articles such as 215C and 312A, have not yet been officially enacted.