Indonesian Trade Minister Zulkifli Hasan announced that Indonesia’s crypto exchange would launch in June 2022. The minister disclosed this during the Crypto Literacy Month opening ceremony on February 2 in Jakarta. It is essential to know that the government is currently reviewing applications from companies that meet specific criteria to be part of the country’s national exchange platform.
Indonesia’s Deputy Trade Minister Jerry Sambuaga reinforced the government’s commitment to launching its crypto exchange by December 2022 during the NXC International Summit in September of that same year. Nonetheless, the progress was stalled as officials sought to guarantee all demands were met and every step of preparation transpired according to plan.
Indonesian national exchange set to provide custodial and mediation services
As reported by Hasan, Indonesia’s regulators have already registered five exchanges to function within the new national cryptocurrency exchange that will be released soon. Also, this platform would work as a clearinghouse and custodian in the Indonesian crypto market, encouraging easy transactions while monitoring the operations of private exchanges.
The minister’s vision of a clearing house is one that provides an intermediary between buyers and sellers to guarantee that all trades are seamless. Additionally, the national crypto exchange will act as a custodian by regulating asset flows while safeguarding the interests of both parties involved.
The trade minister asked for patience as they finalize their preparations before launching the crypto exchange. He stated that being rushed without being fully ready could potentially lead to a less-than-ideal outcome. Moreover, the government is committed to protecting its citizens since the people do not have enough knowledge of crypto trading.
Indonesia transitions regulatory authority for crypto assets
The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) is currently responsible for overseeing and regulating crypto assets within the country. However, it has been reported that Bappebti will relinquish this authority to the Financial Services Authority upon launching the national exchange.
In light of the current modifications to cryptocurrency regulations on December 15, 2022, lawmakers have decreed that all digital assets fall under Regulated Financial Securities. This decree places the Financial Services Authority as the overseer of digital assets instead of Bappebti. With this decision comes an exciting new opportunity for growth in financial security within Indonesia.
To justify the transfer of authority from Bappebti, Suminto Sastrosuwito, head of financing and risk management for Indonesia’s national finance ministry, declared that crypto assets have developed into an investment and financial instrument. He explained that with this new status comes a necessity for oversight of investments or financial instruments, which Bappebti does not currently possess the jurisdiction to perform.
Indonesia is still a crypto-friendly country. Although the Indonesian government prohibited cryptocurrency payments in 2017, digital asset trades are legally permitted.
On December 5, 2022, Governor Perry Warjiyo of the Bank of Indonesia proclaimed that the apex bank plans to release digital currency as the only legal online tender in the nation. This could drastically modify and escalate mainstream acceptance of cryptocurrencies within Indonesia’s market following its national crypto exchange launch.
