[1/2]Representations of cryptocurrencies are shown in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration //
JAKARTA, July 21 (Reuters) – The Indonesian government announced this week the launch of a national crypto-asset exchange to provide transaction records to regulators and better protect crypto investors.
The launch of the exchange and clearing house also aims to enhance monitoring of the burgeoning sector amid a shift in regulatory oversight, according to the Commodity Futures Trading Regulatory Agency (Bappebti).
Indonesia prohibits the use of cryptocurrencies as a means of payment, but allows investment in assets. Such investment has boomed during the pandemic, with data showing that as of June, 17.54 million people in the country had invested in digital assets, more than the number of registered investors on the stock exchange.
However, rising global interest rates have dampened demand for crypto assets in recent months.
Crypto transactions in Indonesia during the January-June period fell 68.7% year-on-year to 66.44 trillion rupiah ($4.42 billion), with Tether, Bitcoin, Ethereum, Ripple and Binance trading, according to Papipte.
The new exchange will list existing licensed cryptocurrency firms, such as Tokocrypto, Binance’s Indodax, and others as traders.
Papipte President Dedede Nurdiantmoku said in a statement that PT Bursa Commodity Nusantara will manage the exchange and PT Clearing Bergangka Indonesia will clear transactions there. PT Tennet Depository Indonesia has been appointed as the Director of Crypto Asset Storage.
A new law signed earlier this year called for the transfer of regulation, supervision and oversight of cryptocurrencies to the financial services authorities from Bappebti, with a transition period of two years.
($1 = 15,026.0000 rupees)
(Reporting by Bernadette Christina Monte) Writing by Gayatri Suroyo; Editing by Kanupriya Kapoor
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