- Indonesia announced that the nation would soon launch a cryptocurrency exchange in 2023.
- The new move is a part of a broader financial reform launched by the nation in December 2022.
- The country would implement the new decision prior to the transfer of the regulatory powers of crypto assets from Bappebti to FSA.
Reportedly, Indonesia has decided to launch a cryptocurrency exchange in 2023 prior to the shift of the regulatory powers of digital assets from the commodities agency to the Financial Services Authority (FSA).
At present, crypto asset trading in the Southeast Asian nation is regulated by Indonesia’s Commodity Futures Trading Regulatory Agency, also known as Bappebti.
Notably, on January 4, Didid Noordiatmoko, the head of Bappebti stated that as a part of a broader financial reform launched in December 2022, the nation intends to set up a crypto exchange this year.
Subsequently, the total control of the cryptosystem will be taken from Bappebti, the commodity-based agency to FSA. In addition, on December 15, the House of Representatives ratified the Financial Sector Development and Reinforcement bill (P2SK) to become the primary legal reference in the financial service sector.
Previously, in 2021, according to a media report, Jerry Sambuaga, Indonesia’s Deputy Trade Minister announced the country’s intention to launch a crypto stock market by the end of 2022 “as a part of efforts to protect consumers amidst rising interests in digital currencies”.
Currently, Suminto Sastrosuwito, the Head of Financing and Risk Management of the National Finance Ministry explained the necessity behind the transfer of the regulatory power from the commodity agency to the FSA.
Notably, he argued that as cryptocurrencies have become investments and financial instruments, they are required to be regulated under the same roof along with the other financial products:
In fact, crypto assets have become investment and financial instruments, so they need to be regulated on an equal basis with other financial and investment instruments.
It is to be noted that the rupiah is the only recognized currency by the Indonesian government. However, the nation has shown positive signs in supporting cryptocurrencies, while becoming apprehensive of its potential to compete with the rupiah.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
