The Indonesian government plans to launch a crypto bourse by the end of the year. A report by a top government official has confirmed this launch saying that the government was making sure that every step needed to effect the move was taken.
Indonesia to launch a crypto bourse by year-end
A local media publication has reported that the Indonesian government plans to launch a crypto bourse by the end of the year. The local publication cited the remarks by the Deputy Trade Minister of Indonesia, Jerry Sambuaga.
During the NXC International Summit 202, the trade minister said that the crypto bourse program was part of the government’s efforts to protect consumers amid growing interest in digital currencies.
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The crypto bourse was initially slated for launch in 2021 but was postponed because of the complex nature of the entire process. According to the trade minister, this was the reason the government did not want to rush in the process.
Launching a crypto bourse can often require much preparation. One of the considerations is evaluating the entities that need to be included in the bourse. There was also a need to validate these entities and to ensure there is minimum capital and other requirements.
The CEO of Tokocrypto, Pang Xue Kai, said that a crypto bourse is a program that can aid in growing the number of participants in the cryptocurrency sector. It can also generate interest from institutional investors.
Tokocrypto is among the 25 cryptocurrency exchanges operating in Indonesia, and the Commodity Futures Trading Regulatory Agency has licensed it in Indonesia. The exchange’s CEO added that the industry would grow, and there would be a rise in local projects.
Crypto regulations in Indonesia
The crypto regulatory framework in Indonesia views crypto assets as commodities, but it fails to recognize these assets as a means of payment. Earlier this year, the Indonesian Directorate General of Taxes said it had imposed an income tax on capital gains from cryptocurrency investments and a 0.1% value-added tax on crypto purchases.
In January, the Financial Services Authority of Indonesia warned that financial companies were barred from offering and facilitating the sale of cryptocurrency assets. However, the Minister of Trade in the country, Muhammad Luthfi, said that the Indonesian government would not impose a blanket ban crypto assets.
On the other hand, the top Islamic body in Indonesia has said that cryptocurrencies are haram under Islamic law. In 2021, cryptocurrency transactions in Indonesia increased by 1224%, from 64.9 trillion rupiahs to 895.4 trillion rupiahs. During the first six months of 2022, Indonesia had 15.1 million crypto users, transacting crypto assets worth 212 trillion rupiahs.