Indonesia intends to establish a cryptocurrency stock exchange in 2023 before transferring regulatory authority from a commodities jurisdiction to securities regulators, as stated in the Bloomberg article.
A cryptocurrency exchange should be formed this year, according to Didid Noordiatmoko, the head of the Commodity Futures Trading Regulatory Agency of Indonesia (Bappebti), who made this announcement on January 4. The action is a part of a larger financial reform initiative that was initiated in December 2022.
According to the proposal, the Financial Services Authority (FSA) will take over cryptocurrency regulation within the next two years from Bappebti, an agency that focuses on commodities.
The Financial Sector Development and Reinforcement bill (P2SK), which will serve as the main legal framework for the financial services industry, was approved by the Indonesian House of Representatives on December 15.
Suminto Sastrosuwito, the director of financing and risk management at the national finance ministry, provided the following justification for the authority transfer from Bappebti to the FSA, which was officially announced by the bill:
In fact, crypto assets have evolved into financial and investment instruments, necessitating the same level of regulation as conventional financial and investment items.
Important facts about Indonesia’s crypto exchange launch
- Currently, cryptocurrency trading in the Southeast Asian country is governed by Indonesia’s Commodity Futures Trading Regulatory Agency, popularly known as Bappebti.
- Didid Noordiatmoko, the interim chairman of the Bappebti, announced on Wednesday that the Financial Services Authority will take over regulatory control of the assets over the following two years.
- The crypto stock exchange was originally scheduled to launch in Indonesia in 2021, but that date was revised to the end of 2022 due to process difficulties.
- Bappebti has approximately 25 authorized cryptocurrency trading firms in Indonesia.
- Indonesia has published a whitepaper to create a digital rupiah and is also interested in establishing a central bank digital currency.
