Bank AI

Bitcoin

Terra

Zipmex

Coin

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
  Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
</div> 
<p class="has-drop-cap">As <a href="https://tokenist.com/indonesia-to-launch-national-crypto-exchange-in-july-after-several-delays/" rel="noopener noreferrer nofollow" class="deco-link">previously announced</a>, the most populous Southeast Asian country finally launched its first national digital asset exchange yesterday. Didid Noordiatmoko, the head of the Commodity Futures Trading Regulatory Agency (“Bappebti”), <a aria-label=" (opens in a new tab)" href="https://bappebti.go.id/resources/docs/siaran_pers_2023_07_20_isa2gi7k_id.pdf" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">described</a> the new institution as having multiple functions – exchange, custody, and clearing house.</p> 
<blockquote class="wp-block-quote"> 
 <p><em>“The establishment of exchanges, clearing houses and managers of crypto asset storage is proof that the government is present in an effort to create a fair crypto asset trading ecosystem to guarantee legal certainty and prioritize protection for the public as customers,”</em></p> 
</blockquote> 
<p>The national exchange has been delayed three times since the initial launch plans in 2021. Limited to local cryptocurrency transactions, the exchange will act much like NYSE but for digital assets.&nbsp;</p> 
<p>This includes know-your-customer (KYC) rules and tight supervision under Bappebti, as the watchdog agency approves digital asset listing and pricing. Alongside Bappebti, the exchange will be supervised by the Financial Services Authority (OJK), Bank Indonesia (BI), and the Ministry of Finance.</p> 
<p>Such level of scrutiny is not surprising given the <a href="https://tokenist.com/bali-governor-warns-tourists-to-stop-using-crypto-for-payments/" rel="noopener noreferrer nofollow" class="deco-link">harsh warnings</a> issued to both tourists and businesses to halt all crypto transactions and use local rupiah (IDR) instead.</p> 
<h3 id="crypto-payments-still-frowned-upon">Crypto Payments Still Frowned Upon</h3> 
<p>Indonesia didn’t outright ban digital assets. In 2019, Bappebti classified them as commodities, tradeable at futures exchanges. This means they cannot be used as legal tender, although stablecoins, BTC, and ETH are unofficially prevalent in tourist hotspots.</p> 
<p>In 2022, a new law transferred digital asset authority from Bappebti to the Financial Services Authority (OJK), which is yet to issue comprehensive digital asset regulation. According to official data from these agencies, there are 17.54 million registered crypto-asset customers in Indonesia as of June 2023.</p> 
<p>Since Indonesia has 274 million citizens, crypto users account for 6.4% of the population.</p> 
<p>During June, Indonesian crypto trading volume reached IDR 8.97 trillion ($596.8M), a 9.3% uptick from the month prior. The most traded digital assets are those with high market cap, offering relative price stability: Tether (USDT), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Binance Coin (BNB).</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="what-about-existing-indonesian-exchanges">What About Existing Indonesian Exchanges?</h3> 
<p>In May 2022, the Indonesian government began taxiing crypto transactions. However, the value-added tax (VAT) was only 0.11%&nbsp; at registered platforms. On non-Bappebti registered platforms, the VAT rate was set at 0.22%. Likewise, the final income tax, imposed when a digital asset is sold for profit, was set at 0.1%, but 0.2% for non-registered Operators of Trade Through Electronic Systems (PPMSE).</p> 
<p>Now that the national digital asset exchange has been approved, existing platforms will likely take a traffic hit. Indodax, Pintu and Luno are the most popular platforms. However, as with most exchanges, there is a shadow of doubt whether they can fulfill obligations in extreme market conditions.</p> 
<p>Previously, Singapore-registered crypto exchange Zipmex collapsed soon after Terra (LUNA) in July 2022. It was the first crypto exchange approved by Bappebti, handling over 2 million users. After bankruptcy filings in Singapore, Zipmex restructuring was <a aria-label=" (opens in a new tab)" href="https://zipmex.com/announcements/moratorium-update-300323/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">approved</a> this March.&nbsp;</p> 
<p>Given that Indonesia had its own FTX-like experience with Zipmex, the government-run exchange will go a long way in legitimizing and re-establishing trust in digital assets.</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title"> <strong>Finance is changing.</strong> 
  </div> 
  <div class="cta-sub__subtitle">
    Learn how, with Five Minute Finance. 
  </div> 
  <div class="cta-sub__excerpt">
    A weekly newsletter that covers the big trends in FinTech and Decentralized Finance. 
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
    Awesome 
  </div> 
  <div class="cta-sub__caption">
    You’ve subscribed. 
  </div> 
  <div class="cta-sub__greeting">
    You’re well on your way to being in the know. 
  </div> 
 </div> 
</div> 
<p><strong><em>Do you think national exchange in Indonesia will boost global trading volume? Let us know in the comments below.</em></strong></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/indonesia-launches-state-backed-digital-asset-exchange/">Indonesia Launches State-Backed Digital Asset Exchange</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Indonesia Launches State-Backed Digital Asset Exchange

Table of Contents

Tokenist

Other articles published on Jul 21, 2023

Bone ShibaSwap (BONE) Secures Listing on Changelly Exchange

Compound Finance’s [COMP] TVL May Not Stop a Pullback, Here’s Why

Majority of All Crypto Workers Are in the US: Research

Bitcoin Holdings on Exchanges Declined to 2018 Levels: What’s the Reason?

Ethereum ICO Participant Reawakens With 619,000% Gains 8-Year Holding Period

The Architect of the Black Swan Theory Criticizes Cryptocurrencies Again

Join our free newsletter for daily crypto updates!