Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has introduced a national digital currency exchange with the aim of providing uniformity and protecting digital currency investors. Bappebti has also established a clearinghouse and a depository for digital assets to accompany the exchange. The move is in response to the high risks associated with physical trading of crypto assets, which can experience significant value fluctuations in a short period.
Under the new regulations, all digital currency transactions in Indonesia must be processed through the national platform. The exchange is primarily meant for domestic transactions, and Bappebti will play a more active role in determining prices.
The launch of the national exchange follows months of stress testing and the refinement of Know Your Customer (KYC) and stock exchange rules. The Indonesian government’s cautious approach and careful planning for the launch are intended to avoid potential pitfalls and ensure a smoother introduction of the exchange.
This initiative aligns with Indonesia’s increasing interest and adoption of digital assets. The country has witnessed growing participation in digital currency investments, with over 17.4 million Indonesians engaging in digital asset trading.
To address potential risks and enhance regulatory oversight, the government has also implemented stricter rules for the digital currency industry. Service providers are now required to have two-thirds of their board of directors composed of Indonesian citizens. Additionally, third-party services will be used for storing clients’ funds to prevent commingling of assets. Furthermore, digital currencies will be classified as securities rather than commodities, with a two-year transition period for compliance with the new classification.
