The Indonesian government is making progress towards the launch of a national cryptocurrency exchange, anticipated to go live in the coming weeks. The country’s Commodity Futures Trading Supervisory Agency (CoFTRA), also known as Bappebti, plans to unveil the exchange in July 2023, according to a report by Tempo news agency.
Bappebti Head, Didid Noordiatmoko, confirmed that once the national crypto exchange is operational, it will be the sole platform authorized for cryptocurrency transactions in Indonesia. The exchange will enforce stock exchange rules, with discussions revolving around Know Your Customer (KYC) processes. To facilitate trading, an integrated application has been developed and successfully tested by CoFTRA, enabling seamless transactions among traders, exchanges, clearing, and depository entities.
The regulatory framework proposed by Bappebti aims to limit cryptocurrency sales to local transactions while aligning with international market developments. Crypto prices will require approval from Bappebti, ensuring consistency and regulation within the industry. Bappebti also informed Trade Minister Zulkifli Hasan about the progress made, stating that unless instructed otherwise, they will issue permits allowing licensed traders to join the exchange within one month.
Earlier plans aimed for the national cryptocurrency exchange to launch in June 2023, but delays pushed the date back. The initiative began in 2021 when a state-backed telecom firm in Indonesia partnered with Binance to establish a joint cryptocurrency exchange. In late 2022, Binance increased its shareholding in Tokocrypto, an Indonesian crypto asset trader.
This move by Indonesia reflects the government’s commitment to regulate and provide oversight to the cryptocurrency industry. By establishing a national exchange, authorities can streamline cryptocurrency transactions within the country, enhancing transparency and security while fostering growth in the digital asset space.
Overall, the launch of Indonesia’s national cryptocurrency exchange signifies a significant step towards formalizing crypto trading in the country, positioning it as an emerging player in the global crypto ecosystem.