Indonesia is planning to launch its crypto exchange in 2023 amid financial sector reforms that will see a change in regulatory powers over digital assets to the Financial Services Authority.
Didid Nurdiatmoko, head of the Commodity Futures Trading Regulatory Agency of Indonesia (Bapebti), said the government will set up an exchange before the Financial Services Authority takes over the oversight of crypto from a commodities agency, Bloomberg. Reported on Wednesday.
As of now, cryptocurrencies are traded alongside commodity contracts under the supervision of the Commodity Futures Trading Regulatory Agency in Indonesia.
Notably, plans to launch a crypto exchange have been postponed several times over the past few years. The government initially intended to launch the platform in 2021, but could not meet that deadline due to complications in the process.
In September last year, the country’s deputy trade minister, Jerry Sambuga, said that he aims to launch a crypto stock market by the end of 2022. “We will ensure that every requirement, process and necessary steps are taken,” he said. Told those days.
Indonesia has long been a supporter of crypto assets. Indonesia’s Ministry of Trade formally Was granted the right Crypto asset trading and recognized cryptocurrency as a commodity back in 2018.
Later in 2019, the Indonesian Commodity Futures Trading Supervisory Authority or Bappebti provided an entire regulatory framework for crypto-asset futures. In short, buying and selling crypto assets is authorized in Indonesia, but only for investment reasons.
The number of crypto investors in Indonesia is also on the rise. Indonesia had a total of 11.2 million crypto investors at the end of 2021, increasing to 16 million in the first 11 months of 2022.
However, with the decline in the broader crypto market, crypto trading volumes in the country also took a hit last year. In 2022, trade value shrinks to around 300 trillion rupees ($19.2 billion), a fraction of the 859 trillion rupees seen in the previous year.
Specifically, Bappebati stopped issuing The registration certificate for potential crypto asset traders is available starting from August last year. The move was aimed at “realizing transparent, efficient and effective trading activities of crypto assets with fair competition to protect the interests of all parties in the crypto trading market.”
There are currently around 25 licensed crypto exchanges operating in Indonesia. One of the exchanges is Zipmex, which suspended withdrawals in the country last year and is preparing a recovery process.
Meanwhile a new report from the CFA Institute has come claims Crypto assets need a clear regulatory framework for mainstream adoption. Olivier Fines, CFA, Head of Advocacy at CFA said:
“There is a need to establish a strong regulatory framework for the benefit of both crypto providers and users. Policymakers should agree on the application of existing laws to various components in the crypto ecosystem or introduce new laws to fill any gaps.” Must prepare. Trust in integrity. Number of crypto markets is essential to attract investors and build a large scale crypto network.”
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