The Financial Services Authority (OJK) has issued a regulation on financial technology (fintech), which is more comprehensive than a prevailing regulation that only regulates peer-to-peer lending.
The regulation, issued on Aug. 15, consists of 45 articles that cover innovation in digital technology for the financial sector, kontan.co.id reported on Friday.
The regulation covers a number of issues such as transaction settlement that relates to investment, while for fund-raising, the regulation covers equity crowdfunding, virtual exchange, smart contract and alternative due diligence.
In dealing with investment management, the regulation covers advance algorithms, cloud computing, capability sharing, open-source information technology, automated advice and management, social trading and retail algorithmic trading.
Meanwhile, for fund collection and distribution, the regulation deals with technology allocation base or peer-to-peer lending, alternative adjudication, virtual technology, mobile 3.0 and third-party application programming interface.
For insurance, the regulation also covers sharing economy, autonomous vehicle, digital distribution as well as securitization and hedge funds.
For market support, the regulation deals with artificial intelligence/machine learning, machine readable news, social sentiment, big data, market information platform as well as automated data collection and analysis.
To support digital financing, the regulation also deals with social/eco crowdfunding, Islamic digital financing, e-waqf, e-zakat, robo advice and credit scoring.
Meanwhile, for other financial services, the regulation also covers invoice trading, voucher, token and blockchain application (bbn)