Indonesian Government to Launch Crypto Bourse This Year, Official Says

The Indonesian government will launch a cryptocurrency exchange later this year, a senior government official said. “We will make sure that all the necessary requirements, procedures and measures have been taken,” he stressed.

Crypto Bourse coming to Indonesia

The Indonesian government plans to launch a cryptocurrency exchange later this year, Dealstreetasia reported Wednesday, citing Indonesian Deputy Commerce Minister Jerry Sambuaga.

Speaking on the sidelines of WIR Group’s NXC International Summit 2022 in Bali, the Minister of Commerce explained that the cryptocurrency exchange initiative is part of the government’s efforts to protect consumers amid the growing interest in digital currencies.

Originally slated to launch in 2021, the bag’s launch has been postponed due to the complexity of the process, according to the publication.

“We will make sure that all the necessary requirements, procedures and measures have been taken,” said Minister Sambuaga. “This is proof that we are careful. We don’t want to be in a hurry because it could make us lose something ”. He elaborated:

Creating a bag requires a lot of preparation. We need to see which entities should be included in the stock exchange.

“Secondly, we have to validate those entities,” continued the government official. “Third, there is a minimum capital and other requirements related to safekeeping, technical stuff.”

Tokocrypto CEO Pang Xue Kai believes a cryptocurrency exchange can help increase the number of participants in the cryptocurrency industry and the interest of institutional investors. Tokocrypto is one of 25 cryptocurrency exchanges licensed by the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti).

Pang stated:

The industry will grow, we will start to see more local projects.

Indonesia allows trading of cryptocurrencies as commodities but does not recognize cryptocurrencies as a means of payment. In April, the Indonesian Directorate General of Taxes said it had set the income tax (PPh) on capital gains from investments in cryptocurrencies and the value added tax (VAT) on purchases of cryptocurrencies at 0.1%.

In January, Indonesia’s Financial Services Authority (OJK) warned that financial companies are not allowed to offer and facilitate the sale of cryptocurrencies. However, the country’s Commerce Minister Muhammad Luthfi said in September last year that the Indonesian government will not ban cryptocurrencies like China has. However, Indonesia’s leading Islamic body, the country’s authority on Shariah compliance, has declared the cryptocurrency haram, which is banned for Muslims under Islamic law.

Crypto transactions in Indonesia rose 1,224% to 859.4 trillion rupees ($ 57.5 billion) in 2021 from 64.9 trillion in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million cryptocurrency users in Indonesia who transacted cryptocurrency worth Rs 212 trillion.

What do you think of the Indonesian government launching a cryptocurrency exchange? Let us know in the comments section below.

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Kevin Helms

Austrian economics student Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin’s security, open source systems, network effects, and the intersection of economics and cryptography.

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