Indonesia Aims To Setup a Cryptocurrency Exchange in 2023

• This is part of broader efforts to restructure the financial services industry.
• The FSA would assume regulatory supervision of the assets within the next two years.

After the commodities agency hands over cryptocurrency assets to the Financial Services Authority (FSA) in 2023, Indonesia plans to launch a cryptocurrency exchange.

Bappebti, the Commodity Futures Trading Regulatory Agency, monitors the cryptocurrency and commodity contract exchanges in Indonesia. Didid Noordiatmoko, the interim chairman of Bappebti, has said that the FSA would assume regulatory supervision of the assets within the next two years. This is part of broader efforts to restructure the financial services industry, and the exchange should be up and running by then.

Government Backing Crypto Sector

There are presently 383 crypto assets and 10 local coins available for trading in Indonesia. With another 151 assets and 10 local currencies being examined by Bappebti. The crypto market may have slowed in 2022, but that hasn’t stopped fresh capital from flooding in. There were 16 million crypto investors in Indonesia in the first eleven months of 2022. This is an increase from 11.2 million by the end of 2021.

Indonesia has been encouraging cryptocurrencies despite concerns that they may threaten the value of the rupiah. The Rupiah is the sole recognized currency in Indonesia. Recently enacted legislation defines cryptocurrencies and other digital assets as “financial securities” subject to the law’s oversight. The government’s financial institution has released a White Paper detailing its digital currency.

Indonesia plans to tighten rules on cryptocurrency exchanges in the month of October 2022. In the statement, they said they would no longer provide licenses to cryptocurrency exchanges, but they didn’t say when the restriction would be removed.