The Indonesian government is expected to launch a crypto exchange by the end of this year, a senior government official has reportedly revealed. “We will ensure that all necessary requirements, procedures and measures have been taken,” he stressed.
Crypto Exchange Coming Soon to Indonesia
Indonesian Government Plans To Launch Crypto Exchange By Year End Dealstreetasia reported Wednesday, quoting Indonesian Deputy Commerce Minister Jerry Sambuaga.
Speaking on the sidelines of the NXC 2022 international summit hosted by WIR Group in Bali, the Minister of Commerce explained that the exchange initiative was part of the government’s efforts to protect consumers amid growing interest in digital currencies.
Originally slated to launch in 2021, the launch of the exchange has been postponed due to the complexity of the process, the publication says.
“We will ensure that all necessary requirements, procedures and measures have been taken,” Minister Sambuaga said. “It’s proof that we are careful. We don’t want to be rushed because it could cause us to miss something. He clarified:
Setting up a stock exchange requires a lot of preparation. We need to see which entities should be included in the exchange.
“Second, we need to validate said entities,” the government official continued. “Third, there’s minimum capital and other requirements related to the custodian, technical things.”
Tokocrypto CEO Pang Xue Kai believes that a crypto exchange can help increase the number of participants in the crypto industry and interest from institutional investors. Tokocrypto is one of 25 cryptocurrency exchanges licensed by the Indonesian Commodity Futures Regulatory Agency (Bappebti).
The industry will grow, we will start to see more local projects.
Indonesia allows crypto assets to be traded as commodities but does not recognize crypto as a payment instrument. In April, Indonesia’s Directorate General of Taxation said it had fixed income tax (PPh) on capital gains from crypto investments and value added tax (VAT) on crypto purchases. crypto at 0.1%.
In January, the Indonesian Financial Services Authority (OJK) warned that financial companies are not allowed to offer and facilitate the sale of crypto assets. However, the country’s Minister of Commerce, Muhammad Luthfi, said in September last year that the Indonesian government would not ban cryptocurrencies like China has done. Nevertheless, Indonesia’s top Islamic body, the country’s authority on Sharia compliance, has declared the cryptocurrency haram, prohibited for Muslims under Islamic law.
Crypto transactions in Indonesia grew by 1,224% to 859.4 trillion rupees ($57.5 billion) in 2021, from 64.9 trillion in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million crypto users in Indonesia, transacting cryptocurrencies worth Rs 212 trillion.
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