Indonesia Extends Crypto License Deadline to Late November 2024

• Indonesia’s Bappebti extends the deadline for crypto exchanges to meet licensing requirements.
• The regulation has undergone its third revision to ensure crypto transactions are organized and secure in the market.
• It focuses on crypto trading platforms’ transition from current temporary registration (CPFAK) to full licensure (PFAK) status.

Indonesia’s Commodity Futures Trading Regulatory Agency, Bappebti, has given domestic cryptocurrency exchanges until late November 2024 to meet the requirements for getting a Physical Crypto Asset Traders (PFAK) license. The regulator’s move is tied to the BAPPEBTI Regulation No. 9, 2024. This regulation, which was first introduced in 2021, has been revised three times to ensure crypto transactions are organized and secure.

Indonesia started working to license crypto exchanges in 2019 with regulations that require authorization for crypto operations. The extension notice, which is based on October 18 updates, focuses on crypto trading platforms’ transition from a temporary registration (CPFAK) to a full license (PFAK). This gives crypto platforms extra time to meet the necessary requirements, including becoming a futures trading platform and a member of a crypto futures clearing house.

Indonesia’s crypto community sees the regulator’s decision to extend the licensing period as positive. INDODAX, one of the country’s leading exchanges, believes that the extended time will help exchanges meet the requirements. INDODAX CEO Oscar Darmawan said, “We appreciate this decision, as it allows more exchanges to fulfill their obligations under current regulations.”

Read also : Indonesian Authorities Bust Crypto Scam with Binance and Tokocrypto’s Help

Platforms like INDODAX have already finished the initial stages of the licensing procedure. According to INDODAX, the company has gotten key approvals for exchange and clearinghouse memberships. The exchange is currently waiting for Bappebti’s final authorization.

Indonesia is trying to support the country’s growing crypto sector. Bappebti created a special committee to monitor the crypto industry. In May 2024, the Head of the Commodity Futures Trading Supervisory Agency (CoFTRA), Kasan, announced the committee’s formation, saying that the committee would ensure that the “crypto asset industry continues to operate smoothly and complies with current regulations.”