The Indonesian government has planned to launch a crypto exchange in 2023, prior to the Financial Services Authority (FSA) taking regulatory power over crypto assets.
Currently, cryptocurrencies are traded as commodities in Indonesia under the administration of the country’s commodity regulatory agency, or Bappebti. Recently, Indonesia announced that the country’ financial sector will undergo reform and the aforementioned FSA will take over the regulatory reigns over digital assets over a two-year time span. According to the head of Bappebti, the crypto exchange should be set up before FSA takes control.
The South Asian country proved to be in favor of digital assets despite being conscious of the fact that cryptocurrency is a strong contender against its native rupiah, currently Indonesia’s sole legal tender. The country’s central bank has also introduced a white paper to plan a course of action for its digital currency. Recently, Indonesia announced that it recognizes crypto and virtual assets as regulated financial securities.
Despite the market taking a downturn in 2022, Indonesian investors continue to display impressive activity in the local crypto market. More than 16 million Indonesians invested in crypto in 2022, up from 11.2 million in 2021. At the time of writing, Indonesians can trade with 10 local coins and 383 crypto assets, while the Bappebti reviews 151 more assets and 10 coins.