Indonesia to set up its own national cryptocurrency exchange

The setting up of a national cryptocurrency exchange in Indonesia could herald a breakthrough for adoption in this highly populated country.

National exchange coming in 2023

Indonesia is set to launch a cryptocurrency exchange in 2023 as part of a financial reform plan, according to a report on Bloomberg. The platform will be established prior to a shift in regulatory oversight from the Commodity Futures Trading Regulatory Agency of Indonesia (Bappebti) to the Financial Services Authority (FSA). 

The move follows the ratification of the Financial Sector Development and Reinforcement bill (P2SK) by the House of Representatives of Indonesia on December 15th, which aims to become the primary legal reference in the financial service sector.

Bappebti head, Didid Noordiatmoko, announced on January 4th that the exchange should be set up this year, following a blanket ban on crypto payments in 2017. Despite the ban, trading in digital assets has retained a legal footing in Indonesia. 

A fall in crypto transactions

Data from Noordiatmoko shows that the value of cryptocurrency transactions in Indonesia fell by half in 2022, from IDR 859.4tn ($55m) to IDR 296.66tn ($19m).

The establishment of a cryptocurrency exchange and the shift in regulatory oversight to the FSA is expected to provide greater clarity and regulation in the sector. It remains to be seen how the exchange will impact the use and adoption of cryptocurrencies in Indonesia.