Indonesia To Set Up Crypto Stock Exchange This Year – Report
According to a recent report by Bloomberg, Indonesia is on track to set up a cryptocurrency stock exchange this year. The exchange, predicted to be operational by the end of 2023, will provide Indonesian investors with access to a wide range of digital assets and trading options.
On January 4, Didid Noordiatmoko, Head of Indonesia’s Commodity Futures Trading Regulatory Agency (BAPPEBTI), announced in a press statement that a cryptocurrency stock exchange would be set up this year as part of the financial reform that the government initiated in December.
BAPPEBTI, a Trading Regulatory Agency, regulates cryptocurrency trading in many Southeast Asian nations, including Indonesia. While speaking in an interview on Wednesday, Noordiatmoko said that the Financial Services Authority would take over regulatory oversight of the assets in Indonesia over the next two years.
In 2021, Indonesia initially declared the commencement of a crypto stock exchange. But the government reversed its decision by the end of 2022 due to the intricacies of the process. The Central Bank Digital Currency is also part of the Indonesia Government plan. However, the whitepaper for developing a digital Rupiah is already out.
Indonesia Joins Other Countries Taking Proactive Steps To Regulate Cryptos
Indonesia joins many countries taking proactive steps to regulate and legitimize cryptocurrencies. Such countries include the United States, Japan, and South Korea. Therefore, this move underscores the nation’s commitment to incorporating digital assets and blockchain technology, as evidenced by its decision to launch a crypto stock exchange.
The Financial Services Authority (FSA) may gain control of crypto regulation from Bappebti due to the House of Representatives of Indonesia signing the Financial Sector Development and Reinforcement bill (P2SK) on December 15. This could lead to changes in the development of the sector.
Suminto Sastrosuwito, Head of Financing and Risk Management of the National Finance Ministry, declared that the P2SK bill was the primary legal reference in the financial service sector according to the agreement.
The exchange will allow investors to buy, sell, and trade various digital assets, including cryptocurrencies, tokens, and other blockchain-based products. Its long-term plan is also to offer derivatives trading and other financial services.
In 2017, the Indonesia Government prohibited cryptocurrency payments, although the law permitted trading on digital assets. This led to a dramatic decrease in cryptocurrency transactions, with 296.66 trillion Indonesian Rupiahs involving cryptos on record as of January 1, 2023 – almost half of the 859.4 trillion Rupiahs recorded the previous year, according to Noordiatmoko.
The new crypto stock exchange would benefit the Indonesian economy by providing local investors access to a broader range of digital assets and trading options. Consequently, It will spur innovation in the country’s financial sector and promote blockchain technology.
With the crypto stock exchange launch, Indonesia will become one of the leading nations in cryptocurrency and blockchain-based investments. This move will likely benefit the nation’s economy in the long run.
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