Indonesia has taken a significant step towards addressing the growing interest in cryptocurrencies and protecting investor interests by launching a national crypto asset bourse. The government’s move emphasizes the bourse’s role in providing regulators with transaction records and enhancing monitoring efforts in the booming crypto sector during a regulatory oversight transition.
The new bourse will list existing licensed crypto companies, ensuring a secure trading environment for participants. Notable players like Binance’s Tokocrypto and Indodax are among the traders listed. The responsibility for the bourse will be held by PT Bursa Komoditi Nusantara, with transaction verification handled by PT Kliring Berjangka Indonesia. For secure storage of digital assets, PT Tennet Depository Indonesia has been appointed as the crypto asset storage manager.
The legislation primarily focuses on enhancing investor protection within the cryptocurrency market. By closely monitoring the sector, the government aims to minimize potential risks, fraudulent practices, and irregularities prevalent in the digital asset landscape.
Despite Indonesia’s ban on using cryptocurrencies as a means of payment, the country witnessed an exponential surge in crypto investments during the pandemic. As of June 2022, approximately 17.54 million people in Indonesia had invested in digital assets, surpassing the number of investors registered with the traditional stock exchange. However, the crypto transaction volume decreased by 68.7% from January to June 2023 compared to the same period in 2022, amounting to 66.44 trillion rupiah (or $4.42 billion USD). Tether, Bitcoin, Ethereum, Ripple, and Binance Coin were the most traded cryptocurrencies by Indonesian investors during this period.
In response to the expanding market and regulatory changes, the new law mandates a two-year transfer of crypto regulation from Bappebti to the Financial Services Authorities.
While some may argue that the government’s increased monitoring of transactions may inhibit the platform’s adoption in the decentralized crypto market, the launch of Indonesia’s national crypto asset bourse demonstrates the government’s commitment to protect investors amidst the nation’s surging interest in cryptocurrencies. With strengthened regulatory oversight and transaction records, the bourse aims to mitigate risks and create a more secure environment for crypto trading, shaping the future of the country’s digital asset landscape.
