Indonesia’s Financial Services Authority (OJK) is currently reviewing a policy to introduce a Single Investor Identification (SID) system for cryptocurrency consumers.

The initiative is considered important to build a more transparent and accountable digital investment ecosystem.

SID will function as a unique identifier for each investor in the digital asset sector, similar to the system already used in the capital market.

SID Aims to Strengthen Oversight and Consumer Protection

The implementation of SID is expected to standardize user identity verification, strengthen monitoring of transactions, and improve consumer protection.

“This SID is expected to become a vital tool to strengthen consumer data integrity and facilitate supervisory processes,” said Hasan Fawzi, Chief Executive Supervisor for Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets at OJK, during a press conference on Monday (5/8/2025).

Industry Response: Tokocrypto CEO Backs the Initiative

Tokocrypto CEO Calvin Kizana welcomed the OJK’s move. He stated that the SID policy forms an essential foundation for strengthening long-term trust in the national crypto ecosystem and expanding public participation in a safer and more structured manner.

“We positively welcome OJK’s initiative to develop SID for crypto asset consumers. SID will not only enhance investor protection and industry credibility, but also offer an opportunity to simplify the onboarding process for users entering the crypto ecosystem,” he said in an official release received by SWA on Thursday (7/8/2025).

SID Should Preserve Easy Access to Crypto Investments

Calvin pointed out that, unlike capital market or mutual fund investments, which require securities accounts, extra documents, and long verification wait times, crypto investments have lower barriers to entry.

With just an ID card and internet access, the public can start investing quickly.

“We hope the SID policy will strengthen this convenience, not complicate it. The system must adapt to the digital industry's nature so that market entry remains simple and inclusive, especially for beginner investors,” he added.

Collaboration Between Regulators and Industry Is Key to Implementation

He also advised that OJK should prioritize a collaborative approach with industry players to ensure effective implementation aligned with actual field needs.

“Through collaboration, we can ensure that the SID system continues to prioritize consumer protection without limiting public access to digital asset investment.”

Although crypto transaction value declined in June 2025, recorded at IDR 32.31 trillion, a 34.82% drop compared to May 2025, Calvin expressed optimism that implementing a sound identification system could support recovery.

“The decline can be addressed by building trust and easing access. A user-friendly SID implementation could be one of the keys to reversing this trend,” he concluded.

PHOTO: UNSPLASH

This article was created with AI assistance.