Indonesia, as the country with the largest Muslim population in the world, holds great potential in developing the Islamic finance industry, particularly in the banking sector. The growth of Islamic banking serves as an important indicator of the successful implementation of an economy based on Islamic values, thus requiring strong, structured, and integrated regulations to ensure Sharia compliance as well as the stability of the national financial system. Regulations function as governing instruments to ensure that financial institutions operate in accordance with Sharia principles, such as the prohibition of riba, gharar, and maisir, while also preventing conflicts and misuse of authority. In Indonesia, the primary regulation concerning Islamic banking is stipulated in Law Number 21 of 2008 and further reinforced by the DSN-MUI fatwas, which serve as operational guidelines for Islamic financial products and services. In addition, the Sharia Supervisory Board plays a crucial role in ensuring compliance with Islamic principles in every activity of Islamic financial institutions. Therefore, regulations and Sharia standards function not only to maintain integrity and public trust but also to support the sustainable growth of the Islamic finance industry. The purpose of this research is to analyze the regulations governing Islamic financial institutions in Indonesia and their role in strengthening the growth of the Sharia-based industry while maintaining compliance with Islamic values.