- The Indonesian government has decided to take measures for the regulation of digital asset exchanges.
- The country’s administration stated that to protect consumer rights in virtual assets, proper regulation will be needed in the country.
- Two-thirds of the regulators on digital trading platforms must be Indonesian.
- Southeast Asia started to concentrate more on Zimpex, a crypto exchange.
According to the reports, in the first quarter of this year, users of cryptocurrency increased to 15.1 million, with transactions worth $14 billion (USD). From 2020 to 2021, the transactions increased by up to $52.5 billion (USD).
The Indonesian government initiated a step to protect the rights of 15.1 million crypto users in the country. The administration released a new set of digital regulations on crypto assets. The country accepts the trading of crypto as a commodity, but until now it didn’t recognize digital assets as a payment method.
In a parliamentary hearing, the ministry of trade added that the regulators and directors on the digital trade exchange platform must be present with two-thirds of the country’s residents. It also stated that the country requires a domestic cryptocurrency exchange that is mostly led by residents of Indonesia.
Didid Noordiatmoko acting head of Bappebti stated “That way at least we can prevent the top management from fleeing the country if any problem arises.”
The Deputy Ministry of Trade states that the permits will not be provided easily. There will be certain regulations to get permission for exchanges. The investor has to meet the requirements of the portal to get the permit.
In May 2022, the Indonesian Directorate General of Taxes and Ministry of Finance introduced a new set of income tax reforms on profits from digital investments and Value-Added Tax (VAT) on purchasing cryptocurrency at 0.1%.
Besides that, the Indonesian government announced plans to launch a crypto bourse at the end of 2022. The institution estimated that the launch of the crypto bourse will attract more investors to invest and will increase the number of users of cryptocurrency.
Most recently, Zimpex, a crypto exchange platform, halted withdrawals due to strict market regulations on crypto assets. Zimpex has four branches across the world: Indonesia, Thailand, Singapore, and Australia. Zimpex is a licensed digital asset in Thailand.
Source: https://www.thecoinrepublic.com/2022/09/23/indonesia-implements-new-crypto-exchange-regulations/