Indonesia is planning to increase the security of cryptocurrency investments.
The Financial Service Authority of Indonesia (OJK), will supervise the proceedings. RegulatingThe finance minister of a Southeast Asian country said that crypto investments should be monitored and supervised to increase investor protection.
The Trade Ministry and Commodity Futures Trading Regulatory Agency oversee the cryptocurrency sector in Indonesia.
Sri Mulyani indrawati, Finance Minister, presented a new plan to increase security as part the financial sector legislation being discussed in parliament.
Although cryptocurrency has experienced a boom in Southeast Asia’s biggest economy, the illegal use of such assets for payment in Indonesia makes it difficult to invest in cryptocurrency. Cryptocurrency transactions are permitted in the commodities market for investment purposes.
Sri Mulyani claims that there were 15.1million cryptocurrency investors in the country at June. This is an enormous increase from the 4 million investors in 2020.
Sri Mulyani stated that a mechanism for investor protection and supervision must be built, particularly for high-risk investment instruments.
She stated that OJK would be able to supervise and regulate “digital assets activities,” including crypto assets, and financial sector innovation.
Late September saw Indonesia announce new rules regarding crypto asset exchanges.
According to a deputy minister, the South Asian country’s Trade Ministry plans to issue new rules that govern crypto exchanges. The board of directors and commissioners must be Indonesian citizens.
This change was caused by the financial difficulties faced by Zipmex cryptocurrency exchange, which currently prevents users from withdrawing money.
After a parliamentary hearing Jerry Sambuaga, deputy minister of trade, said to reporters that they don’t want permits (to be exchanged) given carelessly. He added that only those who are credible and meet the requirements would be granted permits.
Sambuaga stated that the new rule would be issued by the Commodity Futures Trading and Regulatory Agency (Bappebti), of the Ministry of Commerce.
However, no timeframe has been established.
The ministry has released a document that states that the new rule will require exchanges to use third parties to store client funds. It also prohibits exchanges from investing in crypto assets.
Bappebti acting head Didid Noordiatmoko told parliament that having two-thirds of its board be Indonesians based in Indonesia “could stop the top management running if there is a problem with the exchange.”
Also, the country’s performance regarding crypto transaction taxes has improved.
Since the rollout of fintech and crypto transaction taxes in May, Indonesia has amassed nearly $6.8 million, according to the nation’s tax compliance special staffer Yon Arsal.
On May 1, 2018, the Indonesian Finance Ministry imposed a value added tax (VAT), of 0.1%, on crypto-assets bought. While there is no VAT on crypto-assets purchases,Based on the rising popularity of crypto transactions among local investors, the Indonesian government decided to tax them.
Since the COVID-19 pandemic, cryptocurrency interest has risen in Indonesian soil. In 2021, there were 11 million crypto owners.