Possible Crypto Exchange Closures Loom in Nation Dominated by Cryptocurrency

In a recent regulatory shift, a leading nation, which is also the pioneer of the world’s first national crypto bourse, the Commodity Future Exchange (CFX), is set to tighten its grip on the burgeoning crypto market. With over 18 million registered cryptocurrency traders, surpassing the 12 million stock traders, the CFX responds to local crypto demand.

Meanwhile, it reflects a strategic government effort to enhance investor safety, monitoring digital asset transactions for tax compliance.

Crypto Dominated Nation Unveils New Regulations For Crypto Exchanges

Indonesia is reshaping its crypto landscape, mandating that all crypto exchanges register with the CFX to continue operations. The CFX, modeled after traditional stock exchanges like NASDAQ, aims to enhance the safety of the crypto ecosystem for investors.

To operate beyond August 17, 2024, approximately 29 crypto exchanges in Indonesia must register with the CFX, according to reports. Meanwhile, the regulatory framework, initiated in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), requires exchanges to undergo a meticulous authorization process involving self-regulatory organizations (SRO) and Bappebti’s fitness assessment.

According to sources, the CFX serves as a crucial monitoring gateway for the government in Indonesia. Speculations hint at future developments like custodianship for asset storage, liquidity monitoring, and a clearing house for transaction recording to ensure tax compliance.

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Stance On Crypto

Beyond investor protection, government plans indicate a strategic move to track digital asset transactions for tax purposes, signaling a broader regulatory framework for the burgeoning crypto industry. In other words, the CFX registration serves as more than a gateway as it positions the government to closely monitor cryptocurrency transactions for tax purposes. Presently categorized as commodities, crypto assets are subject to Value Added Tax (VAT) and Income Tax (PPh).

However, a critical query emerges regarding the future of cryptocurrencies in 2025, as a regulatory restructuring transfers supervision from Bappebti to the Financial Services Authority (OJK), possibly redefining cryptocurrencies as securities. Should this materialize, traders in the crypto sphere may experience lower taxes, marking a crucial juncture in Indonesia’s ever-changing crypto terrain.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor and crypto journalist at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.