Indonesia has started its journey to establish a national cryptocurrency exchange in 2021.
Indonesia, one of the most populous countries in the world, has officially joined the ranks of the countries with a national crypto exchange and clearing house. After overcoming challenges and delays, the Commodity Futures Trading Supervisory Agency (CFTS) announce On July 20, the long-awaited successful launch of the exchange took place, marking a significant milestone in the country’s cryptocurrency journey.
Through this exchange, the Southeast Asian country aims to provide a regulated and legitimate platform for trading digital assets within its borders to boost investor confidence, promote financial inclusion, and enhance the overall transparency and security of crypto transactions. The newly launched digital asset trading platform will be an exclusive place to conduct cryptocurrency trading operations legally within the country.
Besides the platform, Bappebti also introduced a modern futures clearing house, which is a key component that facilitates smooth and secure transactions between buyers and sellers. This addition is expected to enhance the overall cryptocurrency ecosystem in the country, providing a higher level of protection and reliability for market participants.
Interest in cryptocurrency continues to rise in Indonesia despite the ban on cryptocurrency payments
Indonesia has begun its journey to establish a national cryptocurrency exchange in 2021. However, due to a rigorous vetting process for potential participants, the launch, initially planned for the end of 2022, has been delayed until July 2023. Indonesia’s Minister of Commerce, Zulkifli Hasan, revealed that licensed traders in Indonesia can now join the national exchange within a specified window, enabling them to actively participate in the growing cryptocurrency market in the country.
Last year, Indonesia’s Deputy Trade Minister Jerry Sambuaga proposed policy changes in response to the growing interest in digital assets. One proposal required that two-thirds of the directors and commissioners of crypto companies be Indonesian citizens.
Despite the ban on the use of cryptocurrencies for payments, Indonesia’s interest in digital assets has increased, especially during the pandemic. Papipete data revealed that nearly 11 million people, roughly 4% of the country’s population, have invested in cryptocurrency.
The newly launched exchange and clearinghouse will provide vital transaction records and enhanced protection for cryptocurrency investors in Indonesia. It also marks an important step in monitoring the fast-growing sector amid the ongoing shift in regulatory oversight. While the country bans the use of cryptocurrencies as a method of payment, it allows investments in these assets, which leads to an increase in investments during the pandemic.
Binance Indonesia Arm Tokocrypto is registered on the National Stock Exchange
According to Bappebti’s announcement, popular licensed crypto firms, including Tokocrypto, an Indonesian digital asset trading platform acquired by Binance in December 2022, and Indodax, are among the prominent traders on the exchange. PT Bursa Komoditi Nusantara will manage the day-to-day operations of the national crypto platform, ensuring adherence to regulatory standards and efficient performance. PT Kliring Berjangka Indonesia will oversee the clearing operations, providing a smooth and reliable trading process.
With the passage of a new law earlier this year, the Financial Services Authority will gradually take over the task of regulating, supervising and monitoring cryptocurrencies from BabyPetite over a two-year transition period. This move reflects Indonesia’s commitment to promoting a strong and secure crypto market for its investors.
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Chimamanda is a cryptocurrency enthusiast and seasoned writer focusing on the dynamic world of cryptocurrency. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love of travel and food, bringing a fresh and engaging perspective to her work.
