The Indonesian government has taken a significant step towards strengthening its oversight of the cryptocurrency sector with the launch of the country’s national crypto asset exchange. Unveiled after an initial announcement in 2021, the exchange aims to increase monitoring of the cryptocurrency market while enhancing investor protection in the Southeast Asian nation. The new exchange, operated by PT Bursa Komoditi Nusantara and with transaction clearing handled by PT Kliring Berjangka Indonesia, will also see PT Tenet Depository appointed as the crypto asset storage manager.
A Long-Awaited Development
The launch of the national crypto asset exchange comes after a series of delays that prevented the venture from taking off as planned in 2021. However, Indonesia’s Deputy Trade Minister Jerry Sambuaga’s announcement in September 2022 indicated that the exchange was finally set to debut by the end of that year. And true to his word, the exchange officially began operations earlier in 2023, marking a significant milestone in Indonesia’s transition of regulatory oversight from the Commodity Futures Trading Regulatory Agency (Bappebti) and the Trade Ministry to the Financial Services Authority (OJK).
The Indonesian government’s decision to establish a national crypto asset exchange is fueled by the aim to boost regulatory oversight in the rapidly growing cryptocurrency market. By enabling regulators to have access to transaction records, the government seeks to gain better control over the crypto space while ensuring robust investor protection. With a surge in cryptocurrency investments in the country, reaching nearly 18 million investors as of June, it has become imperative for the authorities to implement measures to safeguard the interests of the growing number of participants.
Listing Binance’s Tokocrypto
One of the significant developments to accompany the launch of Indonesia’s national crypto asset exchange is the listing of Tokocrypto, a prominent player in the country’s cryptocurrency landscape. Binance, a global cryptocurrency exchange, acquired Tokocrypto in December 2022, and its inclusion in the national exchange’s listings further solidifies its position in the Indonesian market. The move showcases Indonesia’s willingness to collaborate with established crypto entities while embracing the potential for growth and innovation in the sector.
Despite the enthusiasm surrounding cryptocurrency investments in Indonesia, there have been notable fluctuations in transaction volumes due to various economic factors. The ban on crypto payments, imposed in 2021, was followed by a surge in crypto investments as they remained legal in the country. However, rising global interest rates and other economic uncertainties have led to a decline in crypto transactions during the first half of 2023 compared to the previous year. Nevertheless, cryptocurrencies like Bitcoin, Ether, Binance Coin, XRP, and stablecoin Tether continue to be among the most traded assets among Indonesian investors.