The government of Indonesia is moving in a positive direction regarding the crypto industry and its ecosystem. According to a report, the government plans to establish its own cryptocurrency exchange as part of its reform of crypto regulations.

Before shifting its regulatory power of crypto assets from commodity agencies to Financial Service Authorities, the country will launch its crypto exchange. 

The development followed after the country’s financial reform was launched in December 2022. On Jan 4, Indonesia’s head of the  Commodity Futures Trading Regulatory Agency (Bappebti), Didid Noordiatmoko informed that the FSA should be given regulatory power over the assets, and the country’s own crypto exchange should be established this year.

Presently, crypto assets in the country are regulated by the Commodity Futures Trading Regulatory Agency, known as Bappebti, and traded alongside commodity contracts.

On December 15, 2022, the House of Representatives of Indonesia ratified the Financial Sector Development and Reinforcement bill (P2SK)  to be the initial legal reference in the financial service sector.

The head of Financing and Risk Management of the national finance ministry, Suminto Sastrosuwito explained the shift of authority from Bappebti to the FSA,  and said, “In fact, crypto assets have become an investment and financial instruments, so they need to be regulated on an equal basis with other financial and investment instruments.”

Indonesia has remained one of the nations in the world which always had certain clarity over crypto rules and its ecosystem. Furthermore, the country’s central bank’s digital currency is in the initial phases of development at present. The country’s apex bank has also shared a white paper to discuss its digital currency. However, its launch has yet to be finalized.

In 2017, Indonesia imposed a complete ban on cryptocurrency, however, the country has legalized the trading of digital assets.  Noordiatmoko also claimed that the country’s value of crypto transactions has gone down to half in the last year, from 859.4 trillion Indonesian rupiahs ($55 million) to 296.66 trillion ($19 million).

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