By announcing the opening of a national cryptocurrency exchange, the Indonesian government has made a huge advancement in the cryptocurrency world. This step attempts to better protect local cryptocurrency investors and give authorities access to transparent transaction records.
Indonesian Government Launches a National Cryptocurrency Exchange
According to the Commodity Futures Trading Regulatory Agency (Bappebti), the exchange and clearing house’s opening also aims to improve sector monitoring as the regulatory structure is changing. In a statement from the agency, the national cryptocurrency exchange, which was introduced a week ago, has officially started running.
The only platform in Indonesia that permits the exchange of digital assets will be this exchange. In addition to announcing the exchange’s July 20 debut, Bappebti also introduced a Futures Clearing House to serve as a middleman between buyers and sellers and facilitate smooth transactions. According to earlier reports, Indonesia would limit cryptocurrency sales to domestic transactions while keeping up with developments in other markets. The exchange has granted authorized traders one month to join.
Indonesia Does Not Support Cryptocurrencies as a Payment Method
Intriguingly, whereas Indonesia forbids the use of cryptocurrencies as a form of payment, it does allow investments in digital securities. Data indicates that as of June, around 17.54 million people in Indonesia had invested in digital assets, exceeding the number of investors listed on the stock exchange, according to Reuters. This significant growth in crypto investments was driven by the pandemic’s surge in interest.
The opening of this national cryptocurrency exchange has been planned at least since December 2021, and it was initially expected to happen towards the end of 2022. In order to assist in the evaluation of potential exchange participants, it was postponed until June 2023.
Trade Minister Zulkifli Hasan declared at that time that all operating cryptocurrency exchanges with valid national registration would be permitted to join the exchange. The project is moving forward, as seen by the most recent integration tests involving traders, exchanges, clearing, and a depository.
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