Indonesia will soon issue revised regulations to regulate crypto exchanges. The revised regulation framework requires that two-thirds (or more) of the crypto exchange directors be Indonesian nationals residing within the country.
Indonesia will tighten its crypto regulations
Indonesia is preparing to issue new rules to tighten the regulation of crypto exchanges, officials from the country’s Minister of Trade and the Commodity Futures Trading Regulatory Agency (Bappebti) said Tuesday at a parliamentary hearing in Jakarta.
Two-thirds must be Indonesian citizens who reside in Indonesia to serve as directors of crypto currency exchanges. Didid Nordiatmoko is the interim head of Bappebti.
We can at least stop the top management fleeing from the country should any problems arise.
Following the financial troubles faced by Zipmex, a Southeast Asia-based crypto exchange that was focusing on cryptocurrency trading, this new measure had to be taken. It also required Zipmex to stop withdrawing funds.
A third party will be required by crypto exchanges to keep client funds safe. It will also be illegal for them to reinvest crypto assets they have stored.
Reporters were told by Jerry Sambuaga (Deputy Minister of Commerce) after the parliamentary hearing.
We don’t want to give permits (to exchanges) carelessly, so only for those that meet the requirements and are credible.
Without stating a time frame, he said that Bappebti would soon issue new rules.
Sambuaga confirmed, too that an Indonesian government still plans to launch a cryptocurrency asset bourse in 2018. The launch of the crypto asset bourse was repeatedly postponed.
Although Indonesia permits the trade of crypto assets in commodities, it does not recognise crypto as a form of payment. The Indonesian Directorate General of Taxes stated in April that it has set the income tax (PPh), on capital gains, and value-added taxes (VAT), on crypto purchases at 0.1%.
According to Bappebti, crypto transactions in Indonesia increased by 1,224% to 859.4 Trillion Rupiahs ($57.5 Billion) in 2021, compared to 64.9 Trillion rupiahs for 2020. The first six months of 2018 saw 15.1 millions crypto users in Indonesia. They transacted cryptocurrencies totalling 212 trillion Rupiahs.
What do you think about Indonesia’s new requirements for crypto exchanges? Please leave your comments below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of companies, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or be attributed to the company or the author.