Indonesia to Establish Crypto Exchange
WHAT YOU SHOULD KNOW
- The Indonesian government has voiced its approval of cryptocurrency and has issued a white paper detailing its plans for a digital form of the rupiah.
- The passing of a new law has enabled the recognition of cryptocurrencies and digital assets as legitimate financial securities.
- The number of crypto investors in Indonesia has grown significantly, with 16 million investors in the country as of the end of 2022.
The Indonesian government has revealed its intention to create a cryptocurrency exchange in the nation, to transfer the authority to oversee such assets from the Commodity Futures Trading Regulatory Agency (Bappebti) to the Financial Services Authority (FSA) in the next two years.
According to Bloomberg, Indonesia is taking steps to reform its financial sector, to modernize and strengthen the nation’s financial system. This is part of a larger effort to improve the country’s economic infrastructure.
The Indonesian government has voiced its approval of cryptocurrency. Still, it has also been wary that these digital assets could threaten the value of the country’s official currency, the rupiah.
In an attempt to tackle this issue, the central bank has issued a white paper detailing its plans for a digital form of the rupiah, which will be open for public debate.
The passing of a new law has enabled the recognition of cryptocurrencies and digital assets as legitimate financial securities. The industry has welcomed this development in crypto indonesia.
Indonesia’s number of crypto investors has been steadily increasing over the past few years. This is due to the growing awareness of the potential of cryptocurrency and blockchain technology among the Indonesian population. The government has also taken steps to regulate the industry, which has helped to attract more investors. As a result, the number of crypto investors in the country has grown significantly. This trend is expected to continue as more people become aware of the potential of the technology and the government continues to take steps to regulate the industry.
In 2021, the crypto Indonesia investor population experienced a slight decrease in market activity. Yet, the number of investors still rose to 16 million by the end of the first 11 months of 2022, up from 11.2 million at the end of 2021.
During the same period, trading values experienced a dramatic decrease, falling from IDR 859 trillion ($55 billion) to IDR 300 trillion ($19.2 billion).
At present, the Indonesian market offers 383 crypto assets and 10 local coins that are available to trade. Bappebti is evaluating an additional 151 assets and 10 coins.
Establishing a specialized cryptocurrency exchange in Indonesia is viewed as an essential step in creating a secure and transparent crypto market in the nation.
According to officials, the Financial Services Authority (FSA) will be able to exercise more control and regulation of these assets with this new measure.
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