Launched cryptocurrency exchange
Indonesia’s Commodity Futures Trading Supervisory Authority (Bappebti) announced today that it has launched its own regulated cryptocurrency exchange.
Indonesia, which is said to have the fourth largest population in the world, is said to have seen a long-term increase in the number of investors engaged in cryptocurrency trading. Listed in the announcement as being heavily traded are the following stocks:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
Although the use of cryptocurrencies for payments is prohibited in Indonesia, transactions have been permitted. There have been reports of plans to open their own exchange. In March 2021, the Deputy Minister of Commerce announced that the ministry would open its own exchange to handle cryptocurrencies in the near future. Also in January, Bloomberg reported on plans to launch the exchange.
connection: Indonesia plans to create a virtual currency exchange in 2023 = report
The new cryptocurrency exchange works like a traditional stock exchange. The head of Bappebti commented as follows.
The establishment of an exchange, a clearing house, and a custodian this time shows the efforts of the government.
To ensure legal certainty and prioritize consumer protection, the government is working to create a fair ecosystem for cryptocurrency trading.
Situation in Indonesia
The number of cryptocurrency investors in Indonesia as of June 2023 is 17.54 million. That number is more than the number of registered investors on stock exchanges, according to Reuters.
According to a Bloomberg report in January, the number of cryptocurrency investors increased from 11.2 million at the end of 2021 to 16 million in November 2022.
In terms of trading volume, the first half of 2023 was down more than 68% year-on-year, but it appears to have recovered in June.
The Indonesia Monetary Authority (OJK) and the Bank of Indonesia (central bank) are also cooperating in the operation of Indonesia’s virtual currency exchange. The specific stocks to be dealt with are not specified in this announcement.
connection: Indonesian authorities to start imposing tax on virtual currency transactions = news