Indonesia readies to publish new laws to stiffen cryptocurrency exchange regulation. The updated regulatory framework indicated that two-thirds of exchange directors should be Indonesians residing in the nation.
Indonesia Plans to Stiffen Crypto Regulation
Indonesia is readying to unveil new policies to stiffen monitoring of cryptocurrency exchanges.
That’s according to Tuesday’s comments by the nation’s Minster of Trade & Commodity Futures Regulatory Agency during the Jakarta parliamentary hearing.
One of the rules wants two-thirds of crypto exchange directors to be Indonesians living in the nation.
Bappebti’s acting head Didid Nordiatmoko told the parliament that such a policy would prevent the management from escaping the country whenever problems arise.
The new rules come after the financial issues that the Southeast Asia-focused exchange Zipmex faced, which forced it to suspend withdrawals. Also, Indonesia requires cryptocurrency exchanges to store investor money in third parties.
Moreover, the rules prohibit them from re-investing the stored digital coins.
Jerry Sambuaga, deputy Trade Minister, told reporters that only credible exchanges and those that satisfy requirements would receive certification. He added that Bappeti would publish the new regulations soon.
Also, Sambuaga highlighted that the Indonesian author plans to launch a cryptocurrency bourse this year. Remember, the government has delayed the bourse launch several times.
Indonesia permits crypto trading as a commodity but doesn’t recognize digital tokens as payment instruments.
In April, the Directorate General of Taxes revealed setting income tax on crypto investments’ capital gains and VAT on cryptocurrency purchases at 0.1%.
Bappebti highlighted that cryptocurrency transactions in the country soared by 1,224% to $57.5 billion (859.4 trillion rupiahs) last year from the 2020s 64.9 trillion rupiahs.
Meanwhile, the initial six months of 2022 had 15.1 million Indonesian cryptocurrency traders transacting cryptos worth about 212 trillion rupiahs.
The country sees increased crypto enthusiasts, and regulations remain crucial to ensuring streamlined undertakings.
Furthermore, the crypto market has witnessed regulatory narratives. For instance, Binance has established Global Advisory Board (GAB) to work on political and regulatory issues.
The board comprises experts that would handle any potential problem as the leading exchange focuses on crypto, web3, and blockchain adoption.
What are your thoughts about Indonesia’s new rules for cryptocurrency exchanges? Feel free to leave replies in the comment area below.
