In a significant development in the realm of cryptocurrency, the Indonesian government has launched a national crypto asset exchange. The move, made public this week, is designed to foster transparency and manage the burgeoning cryptocurrency sector. The newly instituted exchange will offer comprehensive transaction records to regulatory authorities, a step that is expected to fortify protection for investors in the crypto market.
Strengthening Oversight Amid Regulatory Shift
The introduction of the exchange and clearing house is also anticipated to bolster the monitoring of the rapidly expanding sector. This development arrives at a crucial time, as regulatory oversight is transitioning, according to the Commodity Futures Trading Regulatory Agency (Bappebti).
Navigating Crypto Policies in Indonesia
Indonesia, like many other countries, is attempting to strike a balance when it comes to cryptocurrency policies. While the nation prohibits the use of digital currencies as a payment method, it allows citizens to invest in these innovative assets. Data reveals that during the pandemic, such investments saw a remarkable increase. By June, over 17.54 million Indonesians had invested in digital currencies – a figure surpassing the number of investors registered with the country’s stock exchange.
Global Interest Rates Influence Crypto Demand
The crypto market is not immune to global financial trends. With global interest rates on the rise, the appetite for cryptocurrencies has recently experienced a downward trend. Indonesian crypto transactions from January to June dropped by a substantial 68.7% compared to the same period last year, amounting to 66.44 trillion rupiah (approximately $4.42 billion). During this period, the most traded cryptocurrencies were Tether, Bitcoin, Ethereum, Ripple, and Binance Coin, as per Bappebti’s records.
Licensed Crypto Firms on the New Exchange
The newly established exchange is set to list several licensed cryptocurrency firms. Among these are Binance’s Tokocrypto and Indodax, which are set to be featured as traders. The operations of the exchange will be run by PT Bursa Komoditi Nusantara, while PT Kliring Berjangka Indonesia has been assigned to clear transactions, according to Bappebti’s chief, Didid Noordiantmoko. Additionally, PT Tennet Depository Indonesia has been appointed to manage crypto asset storage.
Regulatory Transition to Financial Services Authorities
In a noteworthy legal development earlier this year, the responsibility of cryptocurrency regulation, supervision, and oversight was directed to shift from Bappebti to the Financial Services Authorities. This transition period is slated to span two years.