Indonesia

Indonesia Introduces National Crypto Asset Bourse to Enhance Investor Protection and Regulatory Oversight

In a move aimed at bolstering investor protection and strengthening regulatory oversight in the booming cryptocurrency sector, Indonesia has officially launched a national crypto asset bourse and clearing house.

The launch comes as the country grapples with a transition in regulatory oversight, seeking to provide regulators with better transaction records to monitor the rapidly growing industry.

Despite Indonesia's ban on using cryptocurrencies for payment purposes, it allows investment in digital assets, a sector that witnessed a surge in activity during the pandemic. Surprising data revealed that as of June, more than 17.54 million Indonesians had invested in cryptocurrencies, surpassing the number of investors registered with the traditional stock exchange.

Recent fluctuations in global interest rates have impacted the demand for crypto assets, leading to a 68.7% decline in crypto transactions in Indonesia during the first half of the year, amounting to 66.44 trillion rupiah (approximately $4.42 billion). Among the most traded cryptocurrencies were Tether, Bitcoin, Ethereum, Ripple, and Binance Coin, as reported by the Commodity Futures Trading Regulatory Agency (Bappebti).

The new crypto bourse will list established licensed crypto companies, including Binance's Tokocrypto and Indodax, among others. PT Bursa Komoditi Nusantara will operate the bourse, while PT Kliring Berjangka Indonesia will handle transaction clearing, and PT Tennet Depository Indonesia will serve as the crypto asset storage manager.

Earlier this year, a new law was signed, outlining a two-year transition period to transfer the regulation, supervision, and oversight of cryptocurrencies from Bappebti to the Financial Services Authorities, reflecting the government's commitment to adapting to the evolving crypto landscape.