Indonesia to tighten crypto regulation with stricter exchange rules – Bitcoin News Regulation

Indonesia to tighten crypto regulation with stricter exchange rules – Bitcoin News Regulation

Indonesia is preparing to issue new rules to tighten the regulation of crypto exchanges. Under the revised regulatory framework, two-thirds of the directors of crypto exchanges must be Indonesian citizens residing in the country.

Indonesia plans to tighten crypto regulation

Indonesia is preparing to issue new rules to tighten regulation of crypto exchanges, officials from the country’s trade minister and Commodity Futures Trading Regulatory Agency (Bappebti) said at a parliamentary hearing in Jakarta on Tuesday.

One of the new rules requires that two-thirds of crypto exchange directors be Indonesian citizens residing in the country. Didid Noordiatmoko, acting head of Bappebti, told parliament:

That way we can at least prevent the top management from fleeing the country if any problem arises.

The new measure follows the financial troubles faced by the Southeast Asian-focused crypto exchange Zipmexwhich had to stop withdrawals.

Crypto exchanges will also need to use a third party to store client funds. They will additionally be prohibited from reinvesting the stored crypto assets.

Deputy Trade Minister Jerry Sambuaga told reporters after the parliamentary hearing:

We do not want to give permits (replacements) carelessly, so only for those who meet the requirements and are credible.

He noted without specifying a specific time frame that Bappebti would soon enact new rules.

Sambuaga also confirmed that the Indonesian government still plans to launch a crypto asset exchange this year. The launch of the stock exchange has been postponed several times.

Indonesia allows crypto assets to be traded as commodities, but does not recognize crypto as a payment instrument. This was announced by the Indonesian General Administration of Taxation in April had set and income tax (PPh) on capital gains from crypto investments and value added tax (VAT) on the purchase of cryptocurrencies in the amount of 0.1%.

Crypto transactions in Indonesia grew by 1,224% to 859.4 trillion rupiah ($57.5 billion) in 2021 from 64.9 trillion rupiah in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million cryptocurrency users in Indonesia, who made 212 trillion rupiah worth of cryptocurrency transactions.

What do you think about Indonesia’s new crypto exchange requirements? Let us know in the comments section below.

Indonesia to tighten crypto regulation with stricter exchange rules – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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