OJK-Will-Immediately-Announce-Fintechs-Legal-Protection

OJK Will Immediately Announce Fintech’s Legal Protection

The Financial Services Authority (OJK) will immediatelly launch a new regulation called the Digital Financial Innovation (IKD). The regulation will be officially released on August 2018. This regulation is a legal protection that will arrange Indonesian company which have core business in financial technology (fintech) industry.

Head of Digital Finance Innovation and Micro Finance Development Group of OJK Triyono explained that the plan is still awaiting the approval process from the Ministry of Justice and Human Rights. "We will start to socialize the plan during the inauguration of the fintech center later in mid of August, hopefully after that can be released," said Triyono.

As the release of the regulations that provide this special fintech’s legal proection, it will provide a standard regulation to some fintech companies that have not been specifically regulated. Especially nowdays, as the rapid development of fintech business as the impact of the creation of various modern innovations.

With the regulation, now OJK is getting an additional supervision for other types of fintech payment service which currently are already under the supervision of Bank Indonesia (BI). The types of fintech that are under OJK supervision include fintech peer to peer lending, insurtech, equity crowdfunding and so on.

"The development of fintech is very rapid, we are not possible to make (regulations) one by one.So to arrange it (fintech industry), we make this general regulation in general as the protection for the consumer," said Triyono. Some important points in the regulation of IKD which are concluding the definition of IKD, then the type of fintech company that must register to OJK, and also, there are rules about the regulatory sandbox as a test for the innovation products of fintech companies.

Also not less important, Triyono also added that in the regulation it will also regulate the obligations of fintech bussinesmen to the consumer protection, and also the necessity to report the financial report on a regular basis. Then, fintech company needs to ensure the data confidentiality, and also include on the list of the regulations, anticipates and prevents of the money laundering and the funding for terrorist activities.

Fintech Center Service Start Operating
As mentioned earlier that the regulation which is the regulation that became the fintech’s legal protection will be launched at the same time with the inauguration of the information center of financial technology company or fintech center. OJK mentioned that the launch of the fintech center will be conducted on August 16, 2018.

The Fintech center is a facility for fintech industry businessmen to have the discussion or consultation. Furthermore, the fintech center will also simplify people to more understand to the fintech industry, such as the regulations, business development, and so on.

"At the fintech center we will also include fintech companies that already registered in OJK, thus providing clarity for the community," said Triyono. He also hopes that the fintech center can be utilized by fintech industry businessmen themselves and people who want to more understand the details of this modern financial services industry.

Source: Antara, Bisnis

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the media that became the reference.

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