Indonesia to Update Govt Rules for Crypto, Implement More local Control

New rules could be introduced in Indonesia for 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 that are credible and meet the requirements would be granted permits.

Sambuaga stated that the new rule will be issued by the Commodity Futures Trading and Regulatory Agency (Bappebti), of the Ministry of Commerce.

However, no time frame has been established.

The ministry released a document stating that the new rule will require an exchange to use third-party storage to store client funds. This will also prevent exchanges investing in stored crypto assets.

Bappebti’s acting head, Didid Noordiatmoko, stated that two-thirds were Indonesians and would prevent top management from running when there is a problem.

Sambuaga stated that the plan to create an Indonesian cryptocurrency asset bourse could be realized within the year. It was already delayed last year.

Deal Street Asia reports that the government is trying to protect its people by creating a digital asset exchange. cryptocurrencies It has continued to grow in popularity among the people.

Initial plans for the crypto exchange were to launch in 2021, but it was delayed to the first quarter 2022. The government did not abandon the plan for the exchange after this delay.

Bappebti’s data show that cryptocurrency is gaining popularity in Southeast Asia’s largest economy. The total volume of transactions for crypto assets has increased more than 1,000% by 2021 to 859.4 trillion rupees ($57.37 million).

Also, the country’s performance has improved in terms transaction taxes.

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 implemented a 0.1% value-added tax on crypto-assets purchased. 

The rise in popularity of crypto trading among local investors led to the Indonesian administration taxing them. 

Since the COVID-19 pandemic, cryptocurrency interest in Indonesian soil has risen dramatically. In 2021, 11 million people were crypto owners. 

Source: Shutterstock



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