The Commodities Futures Trading Authority of Indonesia, which is in charge of managing digital assets, is preparing to launch a state-backed cryptocurrency exchange soon. On the exchange, transactions will be carried out this year and on private platforms.
In order to reform cryptocurrency exchanges and lessen the dangers brought on by the failure of the digital asset exchange FTX, Indonesia is looking to the structure of the stock market.
As was previously reported, Indonesian Trade Minister Zulkifli Hasan stated in February of this year that he hoped to create a cryptocurrency exchange by June 2023.
To safeguard assets and prevent a recurrence of the alleged fraud at FTX, other state-backed agencies are planned to handle clearing and custody.
The architecture, which divides trading, clearing, and custody under official oversight similar to how stock markets operate, is made public as regulators around the world redouble their efforts to examine unregistered cryptocurrency exchanges. The tumultuous FTX exchange's bankruptcy in November left a $8 billion gap in the economy and sparked worries that there are too many risky and opaque platforms available to investors.
Due to the difficulty of the process, the exchange has been postponed multiple times from its initial 2021 launch date.
The government is investigating if businesses fully satisfy the requirements to participate in a bitcoin exchange.
Five "de facto dealers in crypto assets," sometimes referred to as exchanges for electronic money transactions, are currently operating out of the 25 exchanges that have registered with the Commodities Futures Trading Authority.
On the other hand, the US is one of the nations tightening regulations after last year's $1.5 trillion market collapse led to the collapse of several crypto organizations. Authorities in Indonesia are thought to be more understanding of digital assets.