Indonesia plans to launch a national cryptocurrency exchange in 2023 as part of regulatory reforms passed by the Indonesian House of Representatives on Dec. 15, Bloomberg reported. The reform involves shifting the regulation of the industry in the country. Before the reforms, commodity-focused body Bappebti had jurisdiction over Indonesia’s cryptocurrency space.
The new policy provides legal backing for the Financial Services Authority (FSA) to regulate the industry for the next two years. Through reforms, Indonesia aims to accept cryptocurrencies and provide related services to citizens of the country.
In addition to introducing a national cryptocurrency exchange, Indonesia is also working on introducing a central bank digital currency (CBDC). In December, Bank Indonesia, through its governor, revealed the pilot design of the virtual rupiah. Indonesia's top financial institution has confirmed that a virtual rupiah will be available soon.
There were 16 million cryptocurrency investors in Indonesia in the first 11 months of 2022, up from 11.2 million at the end of 2021. However, last year, transaction volume dropped from 859 trillion rupiah to around 300 trillion rupiah ($19.2 billion) ($54.9 billion) a year ago.
Recall that in 2017, the Indonesian government banned cryptocurrency payments but allowed the legal trading of virtual assets.
Countries such as Morocco, Nigeria, and Israel are working to introduce crypto regulations by 2023. Regulatory frameworks in countries such as the US and the UK will be looked at. In the U.S., the cryptocurrency community is focusing on changes to this year’s Lummis-Gillibrand encryption bill.
