The Indonesian government plans to create a national cryptocurrency exchange platform this year, Bloomberg reported.
According to multiple reports, the cryptocurrency exchange platform will be under the supervision of Indonesia’s Financial Services Authority, the FSA, which is in the midst of a power transfer process from the country’s Commodity Futures Trading Regulatory Agency, Bappebti.
La FSA to take over supervision and regulation of crypto assets in Indonesia in 2023, for a period of two years, so it is likely that the cryptocurrency exchange platform will be established before the delegation of regulatory powers between the two agencies takes place.
So far, Bloomberg explains, cryptocurrencies and digital assets are overseen by Bappebti alongside commodity contracts.
However, Didid Noordiatmoko, acting head of Bappebti, confirmed the change in regulatory powers over such digital assets. As Noordiatmoko explained, the transfer of powers is part of a financial reform that seeks to transform its regulatory approach towards the crypto-asset ecosystem and strengthen its current system.
Indonesia wants to improve its regulatory approach towards cryptocurrencies
In 2022, Indonesia had committed to launching a national platform for regulated cryptocurrency exchange.
However, Noordiatmoko pointed out that the lack of regulatory clarity on crypto assets in the world at large and the lack of similar initiatives in other countries delayed his initial plans. During a conference on Wednesday, the acting head of Bappebti said that Indonesia will mark a milestone in the crypto world with the construction and launch of its own exchange, but you must make sure you do it the right way so that the ecosystem functions and develops healthily.
The creation of a national platform for cryptocurrency exchange will also boost innovation in the country, which has so far focused on the oversight of crypto assets, Noordiatmoko said. The acting Bappebti chief sees crypto assets as a viable medium that will help boost the country’s digital economy in the next decade.
More than 16 million people invest in crypto assets in the country
In Indonesia, cryptocurrencies are recognized as regulated financial securities.
In the last year, the country has recorded Cryptocurrency transactions worth 300 trillion rupees, or about $19.200 billion. Although this is a fairly significant amount, it represents a 65% drop in the volume transacted with crypto assets compared to 2021. Even so, The number of cryptocurrency users and investors in Indonesia increased in 2022, recording more than 16 million users.
Noordiatmoko stressed that despite the crypto market's downturn last year, digital assets remain one of the top three choices for Indonesian investors.
Finally, the country is also building its own central bank digital currency (CBDC) for the Indonesian rupiah.
Indonesia's plans to issue a digital Indonesian rupiah aim to streamline the country's payment system and improve monetary policy, using a legal instrument for digital payments, Perry Warjiyo, governor of Bank Indonesia, told Reuters in mid-2021.
Continue reading: Asia leads global adoption of cryptocurrencies
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