The Indonesian government is looking to launch a crypto exchange by the end of 2022, according to Deputy Trade Minister Jerry Sambuaga. Sambuaga explains the government is taking steps to protect users who continue to get interested in investing in coins.
The bourse was supposed to be launched in 2021 but the complexity of the process delayed it. Sambuaga says the delay is just a sign that the government is being careful not to miss anything in the process. Other reasons include the need to validate the users who will participate in the platform and other technical requirements.
The idea of a crypto exchange followed a statement made by Trade Minister Muhammad Luthfi in September 2021 that Indonesia will not ban coins as China did. In January 2022, the Financial Services Authority warned that financial firms, including any Bitcoin online casino, are not allowed to facilitate crypto trading. Furthermore, Indonesia’s top authority on Shariah compliance has declared coin trading haram.
In April 2022, the Indonesian Directorate General of Taxes imposed a capital gains tax on coin investments. A 0.1% value-added tax is also imposed on coin purchases. In August 2022, the Financial Services Authority stopped issuing registration certificates for crypto asset traders in an attempt to protect the interests of all parties in the developing crypto market.
Data from Indonesia’s Commodity Futures Trading Regulatory Agency states that the total transaction volume of crypto assets rose by 1224% from 2020 to 2021. Around 11 million Indonesians (4% of the country’s population) have invested in crypto.
Reactions following the expected bourse launch
Pang Xue Kai, CEO of Tokocrypto, opined that the industry will grow in Indonesia as more Web3 projects are launched. He says the bourse will increase the number of players in the Indonesian crypto market.
Crypto investments in Indonesia
In the beginning of September 2022, PT GoTo Gojek Tokopedia Tbk (Indonesia’s biggest tech firm) acquired a crypto firm called PT Kripto Maksima Koin for $8.4 million. Co-founder Andre Soelistyo says the move aims to diversify Indonesia’s currency management hub.
Back in 2021, Binance, one of the world’s most prominent crypto exchange platforms, indicated a collaboration with Indonesia’s richest family—the Hartono Brothers. A partnership with MDI Ventures also helped establish Binance’s foothold in Indonesia. MDI Ventures is a capital firm backed by Telkom Indonesia, the country’s largest telco provider.
What is a crypto bourse?
A crypto bourse is a venue of exchange for digital assets, particularly cryptocurrencies and non-fungible tokens (NFTs). The term ‘bourse’ is the stock exchange of certain European cities. This implies that a crypto bourse would be an important step for a country’s adoption of digital money in its financial system.
Currently, users rely on private platforms such as Binance and Coinbase to trade digital assets. Such applications are not exactly banned by most countries around the world but some jurisdictions have already expressed their refusal to acknowledge digital currencies as alternative modes of payment.
However, following increasing interest in crypto investments, some governments are already starting to welcome financial technology solutions. This will see coins be used in a Bitcoin online casino or any other crypto-related business.