Indonesia sets certification rules for influencers recommending crypto

Indonesia's financial regulator, the Commodity Futures Trading Regulatory Agency (Bappebti), announced on March 12, 2024, new certification requirements for individuals recommending crypto assets and other digital financial products. This move aligns with a global trend of increased scrutiny on "finfluencers" who provide financial advice or recommendations on social media platforms. Under the new rules, influencers must pass a competency test and obtain a certification before they can legally promote digital assets. Bappebti stated that the objective is to protect consumers from misleading information and fraudulent schemes, ensuring that recommendations are based on accurate knowledge and ethical practices. The agency has not yet specified the exact curriculum for the certification or the examination process, but it indicated that the requirements will be rigorous. This regulatory action follows a period of rapid growth in Indonesia's digital asset market, which has attracted both legitimate investors and individuals susceptible to unsubstantiated claims. The Indonesian government has been working to establish a clearer regulatory framework for digital assets, including the formation of a dedicated Digital Asset Exchange by 2025, overseen by the Ministry of Trade. The new certification mandate is expected to be enforced within the next six months, with penalties for non-compliance yet to be detailed.