Indonesia to Launch State-Backed Crypto Exchange by Mid-2023
The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has disclosed that it wants to create a state-backed cryptocurrency exchange by the middle of 2023 at the latest. This market is set to break new ground in the country by being the first of its kind to be created here. The management of the exchange will be handled by entities that get financial backing from the state in order to protect the money of customers and limit the likelihood of fraudulent behavior. The year before last, Indonesia passed new laws that made it mandatory for cryptocurrency exchanges to have at least two-thirds of their management team based in the country, store the funds of their customers in bank accounts controlled by a third party, and be prohibited from reinvesting previously acquired cryptocurrency assets. These new laws went into effect on January 1, 2018.
It is anticipated that the value of transactions involving crypto assets would reach around $57.7 billion in Indonesia in the year 2021. This figure represents a 1,224% rise in comparison to the value of similar transactions in the year before. Despite this, the country's cryptocurrency business has taken a hit as a consequence of the collapse of a number of important cryptocurrency organizations, including as FTX and Zipmex, both of which had their headquarters in Singapore. This has caused the industry to suffer a setback. In addition, the cryptocurrency industry experienced losses of around $4 billion worth of digital assets in 2022 as a result of scams, fraud, and rug pulls, with five major exploits totaling $2,361,000,000 by itself.
Indonesia's commitment to promoting a more secure and transparent cryptocurrency market is reflected in the country's ambition to create a state-backed cryptocurrency exchange. As frauds and fraudulent activity continue to plague the cryptocurrency sector, Indonesia's commitment to do so is reflected in the country's ambition to create a cryptocurrency exchange. The government of Indonesia has the goal of reducing the number of instances of fraudulent activity, securing the assets of customers, and increasing the use of cryptocurrencies in the country by separating the trading, clearing, and custody processes in a manner that is supervised by the government.