Indonesia will soon have its very own national crypto exchange
Yes, you read that right. Indonesia will soon have its very own national crypto exchange! This is going to be the first time ever a country is creating a state-backed crypto exchange.
The crypto space is taking some brutal punches from all sorts of sides over the past months. Starting with China’s ban of any crypto mining activities in the country, and Binance facing legality problems in the UK, Hong Kong, Italy, and other countries as well. These are some of the main factors why the crypto market is facing never-ending turbulence since April.
After what looks like a promising start of the year for Bitcoin, hitting ATH (All-Time High) over and over again, now the price of the number one cryptocurrency itself is half of its April price when it reached its ATH of over $63,000. So this raises the question for crypto investors in Indonesia, what does the future hold for cryptocurrencies?
A Fast Growing Number of Crypto Investors
Indonesia is a country with a fast-growing number of crypto investors reaching 4.45 million and a total crypto transaction value of IDR 370 trillion according to Bappepti (The Commodity Futures Trading Regulatory Agency). This number far exceeds the estimated 2 million stock investors as of February 2021.
Next let’s talk about the legilty of cryptos in the country. Is cryptocurrency legal in Indonesia? Yes It is, but the central bank of Indonesia doesn’t recognize it as a means of payment and bans any sort of payment using cryptos. Here are 4 points of crypto’s regulatory status in the country:
- Cryptocurrency is legal in Indonesia and is defined as a commodity
- The Futures Exchange Supervisory Board regulates crypto in the country
- Cryptocurrencies cannot be used as legal tender in Indonesia
- Indonesia implements strict anti-money laundering laws
In addition, the Indonesian government is also considering a plan to tax the trading of cryptocurrencies after a wave of popularity among local investors. Neilmaldrin Noor, a spokesman at Indonesia’s tax office, said a tax scheme for cryptocurrency was still at the discussion stage.
“It’s important to know, if there is a profit or capital gain generated from a transaction, the profit is an object of income tax,” Neilmaldrin said.
Indonesia’s First National Crypto Exchange
Yes, Indonesia will soon have its own national crypto exchange according to the Indonesian Deputy Minister of Trade, Jerry Sambuaga. Although there is no specific date for the official launch, the exchange could be established as soon as the end of the year.
“Indeed, by the end of this year an exchange will be established at the latest. We also believe that crypto circulation and flow should be more domestic rather than overseas”. – Jerry Sambuaga, Deputy Minister of Trade
Indonesia is growing as a crypto local and regional hub in recent years. However, it’s the crypto-economy that has the possibility to continue growing. Nevertheless, this is surely one good piece of news crypto enthusiasts in Indonesia have been waiting for. But there are some who still anticipate that the government will eventually change the regulation of cryptocurrencies from commodities. Although it seems unlikely in the near future, but who knows?
The plan to establish a national crypto exchange is one big step for the future of crypto assets in Indonesia since this would be the first time ever a country is creating a state-backed crypto exchange. Revolutionary!