July 22, 2023
In 2018 , Indonesia banned the used of cryptocurrencies as a mode of payment for goods and services with in its jurisdiction but allows the investment in such assets.The investment in cryptocurrencies in indonesia boomed during the pandemic and data in june showed that as many as 17 million people have invested in the crypto market, this is more than the stock market. With the popularity of cryto investing in the country , the countries regulatory authority , The Financial Service Authority has deemed it necessary to regulate the crypto market and provides regulatory measures to protect assets and such is the launch of the Cryto Clearing House this week.This move is likely in response to the growing popularity of crypto investments in Indonesia and the need to safeguard investors from potential risks associated with unregulated exchanges
“The launch of the exchange and clearing house is also intended to strengthen monitoring of the booming sector amid a transition in regulatory oversight”, according to the Commodity Futures Trading Regulatory Agency.
The main purpose of launching the national crypto asset bourse is to provide regulators with transaction records and enhance the protection of crypto investors. By having a centralized exchange platform, authorities can monitor and regulate cryptocurrency transactions more effectively. This suggests that the Indonesian government is taking steps to closely supervise cryptocurrency activities within the country, ensuring compliance with relevant laws and regulations.
The new bourse will list existing licensed crypto companies as traders. This implies that only authorized and regulated crypto firms will be allowed to operate on the national exchange, further promoting investor protection and ensuring compliance with the country’s regulations.
According to Bappebti, cryptocurrency transactions in Indonesia between January and June experienced a significant decline of 68.7% compared to the same period in the previous year, amounting to 66.44 trillion rupiah ($4.42 billion). The most actively traded cryptocurrencies during this time were Tether, Bitcoin, Ethereum, Ripple, and Binance Coin.This decline in transaction volume could be attributed to various factors, including the impact of global interest rates and potential regulatory uncertainties.
photo source: google
Delino Gayweh
Serrari Financial Analyst
