Indonesia to Tighten Crypto Regulation with Stricter Rules for Exchanges – Bitcoin Regulation News

Indonesia to Tighten Crypto Regulation with Stricter Rules for Exchanges – Bitcoin Regulation News

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

Indonesia plans to tighten crypto regulations

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

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

This way we can at least prevent senior management from fleeing the country if something goes wrong.

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

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

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

We don’t want to license (exchanges) lightly, so only those who meet the requirements and are credible.

He noted without giving a specific time frame that Bappebti will publish the new rules soon.

Sambuaga also confirmed that the Indonesian government is still planning to launch a crypto asset exchange This year. The launch of the exchange has been repeatedly delayed.

Indonesia allows crypto assets to be traded as commodities but does not recognize crypto as a payment instrument. In April, the Indonesian Directorate General of Taxation stated that it had fixed both income tax (PPh) on capital gains from crypto investments and value added tax (VAT) on crypto purchases at 0.1%.

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

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

Kevin Helms

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

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