Before giving the Financial Services Authority, rather than a commodities agency, regulatory authority over such assets, Indonesia aims to establish a cryptocurrency exchange this year.
The Commodity Futures Trading Regulatory Agency, or Bappebti, oversees the trading of crypto assets in Indonesia alongside commodity contracts. According to Didid Noordiatmoko, acting chairman of Bappebti, the FSA will take over regulatory control over the assets over the next two years as part of a larger financial sector reform, by which time the exchange ought to be established.
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Despite being apprehensive of cryptocurrencies competing with the rupiah, the only legal cash in the nation, Indonesia has been supportive of cryptocurrencies. A recently passed law classifies cryptocurrencies and other digital assets as regulated financial securities, and the central bank has published a white paper outlining its digital currency.
Even though the cryptocurrency market saw a decline in activity last year, new investors are still pouring money into it. In the first eleven months of the year, there were 16 million cryptocurrency investors in Indonesia, up from 11.2 million at the end of 2021. During that time, trading value decreased from the 859 trillion rupiah witnessed the year before to about 300 trillion rupiah ($19.2 billion).
With another 151 assets and 10 local coins being evaluated by Bappebti, there are currently 383 crypto assets and 10 local coins that can be traded in Indonesia.