Indonesia to launch cryptocurrency exchange in 2023, to be regulated as ‘financial instruments’

  • Indonesia plans to launch a crypto exchange in 2023.
  • The country is transferring regulatory oversight of cryptocurrencies to the Financial Services Authority.

The year 2023 will see important reforms in the crypto industry in Indonesia. As part of this overhaul, the island nation will launch an exchange later this year, which will launch ahead of a major shift in the country’s cryptocurrency industry.

A new stock exchange under new regulatory bodies

According to a report published bloomberg on January 4thIndonesia’s Commodity Futures Trading Regulatory Agency, also known as Bappebti, will hand over its oversight of crypto assets to the Financial Services Authority, a securities-focused agency.

Dedede Nordiatmoko, Acting Director of Papepte, stated that the Financial Services Authority will take over the regulatory authority over crypto assets from the commodity agency within the next two years. During this time, Indonesia will establish a crypto exchange.

Official of the Indonesian Ministry of Finance mentioned That the shift of regulatory authority from commodities to securities firms was justified by the status of crypto assets as investment vehicles. he added:

“Cryptoassets have effectively become investment and financial tools, so they should be regulated on a par with other financial and investment tools.”

Cryptocurrency industry in Indonesia

The change in regulatory authorities will affect 383 cryptocurrency groups and 10 local currencies currently available in Indonesia. Bappebti is currently reviewing 151 other assets and 10 local coins. The country has 16 million crypto investors, with an even bigger rush despite the industry-wide downturn.

The crypto winter has had an impact on the cryptocurrency trading volume in the country. Between January 2022 and November 2022, the value of trade increased from 859 trillion rupees to 300 trillion rupees, a decrease of 66%.

In December 2022, Peri Warjiu, Governor of the Central Bank of Indonesia, exposed It plans to launch a CBDC called Digital Rupiah. It is said that CBDC will be used for various economic and digital financial transactions.

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