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

Indonesia is preparing to issue new regulations to tighten regulation of cryptocurrency 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 regulation

Indonesia is preparing to issue new regulations to tighten regulation of cryptocurrency exchanges, officials from the country’s Trade Minister and the Commodity Futures Trading Authority (Bappebti) said. learned on Tuesday at a parliamentary hearing in Jakarta.

One of the new rules requires two-thirds of the directors of cryptocurrency exchanges to be Indonesian citizens residing in the country. Didid Noordiatmoko, acting head of Bappebti, told parliament:

That way, we can at least prevent the top leadership from fleeing the country if any problems arise.

New measure follows financial trouble faced by Southeast Asia-focused crypto exchange Zipmexhad to suspend withdrawals.

Cryptocurrency exchanges will also be required to use third parties to store customer funds. In addition, they will be prohibited from reinvesting in stored crypto assets.

Deputy Commerce Secretary Jerry Sambuaga told reporters after the congressional hearing:

We don’t want to license (to exchanges) carelessly, so only those that meet the requirements and are trustworthy.

He noted without giving a specific timeframe that Bappebti will issue new rules soon.

Sambuaga also confirmed that the Indonesian government is still planning to launch a crypto assets This year. The market launch has been delayed several times.

Indonesia allows trading of crypto assets as commodities but does not recognize cryptocurrencies as a means of payment. In April, the General Department of Taxation Indonesia said established both income tax (PPh) on capital gains from crypto investments and value added tax (VAT) on crypto purchases at 0.1%.

Cryptocurrency transactions in Indonesia have grown by 1.224% to Rs 859.4 trillion ($57.5 billion) in 2021 from Rs 64.9 trillion in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million crypto users in Indonesia, trading cryptocurrencies worth 212 trillion rupia.

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

Kevin Helms

An Austrian Economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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