Indonesia Set to Launch National Cryptocurrency Exchange in July
The Indonesian government is pushing forward with its long-awaited plan to introduce a national cryptocurrency exchange, which will be accessible to citizens in the coming weeks.
July launch
According to a report from Tempo, Indonesia’s Commodity Futures Trading Supervisory Agency (CFTRA), also known as Bappebti, has announced that the national crypto exchange will be launched in July.
Didid Noordiatmoko, the head of Bappebti, revealed that all cryptocurrency transactions in Indonesia will be exclusively permitted through the national exchange. He confirmed that the agency has recently finalized discussions on stock exchange rules, which include the implementation of Know Your Customer (KYC) procedures. Noordiatmoko also mentioned that the exchange will offer trading services through an integrated application, which has already undergone testing by CFTRA.
Plan delays
The launch of the national cryptocurrency exchange was initially planned for June 2023 but faced delays, following a previous postponement from the original target of December 2022. The project gained traction in 2021 when a government-backed Indonesian telecoms company announced a partnership with Binance to develop a joint cryptocurrency exchange.
According to the latest report, Bappebti intends to restrict cryptocurrency sales to local transactions while aligning with global market trends. Approval from Bappebti will also be required for cryptocurrency prices on the exchange.
Bappebti has informed Trade Minister Zulkifli Hasan about the progress of the national exchange. Noordiatmoko stated that unless further instructions are received, Bappebti will proceed to issue the necessary permit, allowing licensed traders one month to join the exchange.
As of earlier this year, Indonesia had around 383 tradable crypto assets and ten local coins, with an additional 151 assets and ten coins under review by Bappebti.
Indonesia’s central bank has released a white paper outlining its digital currency plans and approved a law classifying cryptocurrencies and digital assets as regulated financial securities. It has shown a level of support for digital assets albeit with an eye towards maintaining strict control. It has taken the lead in classifying 501 crypto assets, including BTC, ADA, BUSD, DOT, XTZ, and SAND, as commodities, setting an example that other nations may follow.
Crypto is not permitted as a means of payment in Indonesia and in May the Governor of Bali warned foreign visitors against using it as such.
In 2022, Indonesia’s trade ministry reported approximately 14 million cryptocurrency traders, surpassing the number of stock traders at 9 million. Meanwhile, the total trading value fell from 859 trillion rupiah in the previous year to around 300 trillion rupiah ($19.2 billion).
Indonesia has been supportive of de-dollarization initiatives and the aspirations of BRICS nations to promote non-US fiat currencies. In April, the governor of the Bank of Indonesia, Perry Warjiyo, announced the introduction of the Local Currency Transaction (LCT) as part of Indonesia’s currency diversification strategy, aligning with the BRICS countries.
