Before transferring control of these assets from a commodities agency to the Financial Services Authority (FSA), Indonesia wants to establish a cryptocurrency exchange in 2023.
The Commodity Futures Trading Regulatory Agency, or Bappebti, oversees the trading of crypto assets in Indonesia alongside commodity contracts. According to Didid Noordiatmoko, acting chairman of Bappebti, the FSA will take over regulatory control of the assets over the next two years. This is a part of a larger financial sector reform, by which time the exchange ought to be established.
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Crypto assets in Indonesia
With another 151 assets and 10 local coins being evaluated by Bappebti, there are currently 383 crypto assets and 10 local coins that can be traded in Indonesia. Even though the crypto market saw a decline in activity in 2022, new investors are still pouring money into it. In the first eleven months of the year, there were 16 million cryptocurrency investors in Indonesia. This is up from 11.2 million at the end of 2021. During that time, trading value decreased from the 859 trillion rupiah. They witnessed the year before to about 300 trillion rupiah worth 25.8 billion USD.
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Despite being apprehensive about cryptocurrencies competing with the rupiah, Indonesia has been supportive of cryptocurrencies. Rupiah is the only legal cash in the nation. A recently passed law recognizes cryptocurrencies and other digital assets as regulated financial securities. The central bank has published a White Paper outlining its digital currency.
Indonesia’s announcement of new laws for exchanges
In the month of October 2022, Indonesia announced to make its crypto exchange regulations strict. They banned the licensing for the crypto exchanges in the announcement which did not indicate when the ban will be uplifted. When the news of Southeast Asia putting strict laws on cryptocurrencies came, the parliament of Indonesia proposed these new regulations. Cryptocurrency has been booming in the region, despite having a tumultuous crypto year in 2022.