According to reports, Indonesia will launch a cryptocurrency exchange in 2023 as part of an overhaul of crypto regulations. The platform is to be launched before the transfer of regulatory powers from the commodities regulator to the securities regulator.
On Jan. 4, Didid Noordiatmoko, head of Indonesia’s Commodity Futures Trading Commission (Bappebti), said cryptocurrency exchanges should be established later this year. The move is part of broader financial reforms set to kick off in December 2022. As part of the reforms, the Financial Services Authority (FSA) will take over crypto regulation from commodities-focused agency Bappebti within the next two years.
The Financial Sector Development and Strengthening Act (P2SK) was passed by the Indonesian House of Representatives on December 15 as the main legal framework for the financial services sector. Explaining the transfer of power from Bappebti to the FSA, Suminto Sastrosuwito, Head of Finance and Risk Management at the National Treasury, claimed:
“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.”
Indonesia History With Blockchain and Cryptocurrencies
Indonesia banned crypto payments across the board in 2017, while digital asset trading remains largely legal in the country. Earlier in January, Noordiatmoko announced that the value of cryptocurrency transactions in the country will halve in 2022, from 859.4 trillion rupiah ($55 million) to 296.66 trillion ($19 million).
In December, Bank Indonesia Governor Perry Warjiyo announced the release of draft concepts for a digital rupiah — a currency equivalent to the country’s legal tender — for public discussion.