SC Malaysia inks FinTech agreement with Indonesia’s OJK

By Edil Corneille

The Securities Commission Malaysia (SC) today signed a financial technology cooperation agreement with Indonesia’s Otoritas Jasa Keuangan (OJK). The agreement has been signed to establish a collaborative framework to develop the FinTech ecosystem in both markets. OJK Indonesia is an Indonesian government agency that regulates and supervises the financial services sector, which includes banking, capital markets, and non-bank financial industries sectors.

SC Chairman Datuk Syed Zaid Albar encapsulated, “The signing of this MoU marks an important milestone for both the SC and OJK. We now share the intention to promote innovation in our respective capital markets. Through greater collaboration, both Malaysia and Indonesia can develop and scale up our FinTech industries in support of the ASEAN Economic Community.”

The agreement between the two parties aims to facilitate information sharing on emerging trends and regulatory developments in FinTech, provide joint innovation project opportunities and facilitate referrals of FinTech businesses seeking to operate in each other’s jurisdiction.

Since 2017, the SC had established six FinTech agreements with global regulators such as the Hong Kong Securities and Futures Commission (SFC), the Monetary Authority of Singapore (MAS), and the Australian Securities and Investments Commission (ASIC), among others.

As part of its digital agenda, the SC had introduced various FinTech initiatives since 2015, such as being the first jurisdiction in the Asia-Pacific to regulate equity crowdfunding (ECF). This was followed by a regulatory framework for peer-to-peer (P2P) financing, digital investment management (DIM) services, and digital asset exchanges (DAX), among others. In May this year, it introduced the framework for the online distribution of capital market products through e-Services platforms like e-wallet or e-payment service providers.

ALSO, READ: Global FinTech Use Cases in Financial Services Report 2020 by IBS Intelligence