By
Chimamanda U. Martha
April 25th, 2024
Indonesia began its journey to establish a national crypto exchange in 2021.
Indonesia, one of the world’s most populous countries, has officially joined the ranks of nations with a national crypto exchange and clearing house. After overcoming challenges and delays, the Commodity Futures Trading Supervisory Agency (Bappebti) announced on July 20 the successful launch of the long-awaited exchange, marking a significant milestone in the country’s crypto journey.
With this exchange, the Southeast Asian country aims to provide a regulated and legitimate platform for digital asset trading within its borders to boost investor confidence, promote financial inclusion, and enhance crypto transactions’ overall transparency and security. The newly introduced digital asset trading platform will be an exclusive venue for legally conducting crypto trades within the country.
Accompanying the platform, Bappebti has also introduced a state-of-the-art futures clearing house, an essential component that facilitates smooth and secure transactions between buyers and sellers. This addition is expected to bolster the country’s overall crypto ecosystem, offering a higher level of protection and reliability for market participants.
Interest in Cryptocurrencies Continues to Surge in Indonesia Despite Ban on Crypto Payments
Indonesia began its journey to establish a national crypto exchange in 2021. However, due to the meticulous review process of potential participants, the launch, initially planned for the end of 2022, was delayed until July 2023. The Trade Minister of Indonesia, Zulkifli Hasan, revealed that licensed traders in Indonesia can now join the national exchange within a specified window, enabling them to participate actively in the country’s growing crypto market.
Last year, Indonesia’s deputy minister of trade, Jerry Sambuaga, proposed policy changes in response to the growing interest in digital assets. One of the proposals required two-thirds of the directors and commissioners of crypto firms to be Indonesian citizens.
Despite the ban on using cryptocurrencies for payment, Indonesia’s interest in digital assets has surged, especially during the pandemic. Bappebti’s data revealed that nearly 11 million people, approximately 4% of the country’s population, have invested in cryptocurrencies.
The newly launched exchange and clearing house will provide vital transaction records and enhanced protection for crypto investors in Indonesia. It also marks a significant step in monitoring the rapidly growing sector amid the ongoing transition in regulatory oversight. While the country prohibits using cryptocurrencies as a means of payment, it permits investments in these assets, leading to a surge in investments during the pandemic.
Binance Indonesia Arm Tokocrypto Registered with the National Exchange
According to the Bappebti announcement, renowned licensed crypto companies, including Tokocrypto, an Indonesian digital asset trading platform acquired by Binance in December 2022, and Indodax, are among the prominent traders on the exchange. Day-to-day operations of the national crypto platform will be managed by PT Bursa Komoditi Nusantara, ensuring adherence to regulatory standards and efficient functioning. PT Kliring Berjangka Indonesia will oversee clearing transactions, providing a seamless and reliable trading process.
With the passing of a new law earlier this year, the Financial Services Authority will gradually take over the regulation, supervision, and oversight of cryptocurrencies from Bappebti over a two-year transition period. The move reflects Indonesia’s commitment to fostering a robust and secure crypto market for its investors.