The Indonesian government has announced plans to establish a cryptocurrency exchange in the country, with the goal of transferring regulatory powers over such assets from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (FSA) within the next two years.
This move comes as part of a larger financial sector reform effort in Indonesia, which aims to strengthen and modernize the country's financial system, Bloomberg reported.
While the Indonesian government has expressed support for the use of cryptocurrency, it has also been cautious about the potential for these assets to compete with the national currency, the rupiah.
Indonesia's Central Bank Releases Plans For Digital Rupiah
In an effort to address this concern, the central bank has released a white paper outlining its plans for a digital version of the rupiah, which will be made available for public discussion.
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This move follows the passing of a new law that recognizes cryptocurrencies and digital assets as regulated financial securities.
Crypto Investors In Indonesia Climb Steadily
Despite a decline in market activity last year, the number of crypto investors in Indonesia has continued to grow, reaching 16 million in the first 11 months of 2022, up from 11.2 million at the end of 2021.
However, trading values shrunk to around IDR 300 trillion ($19.2 billion) during the same period, a significant decrease from the IDR 859 trillion ($55 billion) recorded in the previous year.
Currently, there are 383 crypto assets and 10 local coins that can be traded in Indonesia, with an additional 151 assets and 10 coins under review by Bappebti.
The establishment of a dedicated cryptocurrency exchange in the country is seen as a crucial step in the development of a robust and transparent crypto market in Indonesia. Officials say it will allow for better oversight and regulation of these assets by the FSA.
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