Indonesia to set up crypto stock exchange

The Indonesian government is planning to establish its envisaged “crypto stock exchange” by the end of 2022, DealStreetAsia cited the country’s deputy trade minister Jerry Sambuaga as saying.

Originally set to launch in 2021, the realisation of the bourse was postponed due to the “complexity” of the process, the report said.

The exchange is meant to exclusively list companies in the digital asset industry, and only those which have been granted licenses by Indonesian financial watchdog Commodity Futures Trading Regulatory Agency, or Bappebti.

The Indonesian government sees the exchange as a means of protecting consumers as interest in digital currencies has risen, according to the report.

Lot of requirements

“Creating a bourse needs many preparations,” Sambuaga said.

“We need to see which entities should be included in the bourse. Secondly, we need to validate the said entities. Thirdly, there is a minimum capital and other requirements related to custodian, depository and technical things,” he added.

Indonesia allows the trading of crypto assets as commodities but does not recognise crypto as a payment instrument. In April this year, the Indonesian Directorate General of Taxes said it had set income tax on capital gains from crypto investments and value-added tax on crypto purchases at 0.1 per cent.

No crypto ban like in China

Still, the situation for crypto users remains confusing in Indonesia. The country’s Financial Services Authority OJK warned that financial firms are not allowed to offer and facilitate sales of crypto assets.

However, the country’s trade minister Muhammad Luthfi said in September last year that the Indonesian government will not ban cryptocurrencies as China did.

Nonetheless, Indonesia’s top Islamic body, the country’s authority on Shariah compliance, has declared cryptocurrency haram, or forbidden, for Muslims under Islamic law.

Crypto transactions in Indonesia increased by 1,224 per cent to 859.4 trillion rupiah ($57.7 billion) in 2021 from 64.9 trillion rupiah 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 212 trillion rupiah.



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The Indonesian government is planning to establish its envisaged “crypto stock exchange” by the end of 2022, DealStreetAsia cited the country’s deputy trade minister Jerry Sambuaga as saying. Originally set to launch in 2021, the realisation of the bourse was postponed due to the “complexity” of the process, the report said. The exchange is meant to exclusively list companies in the digital asset industry, and only those which have been granted licenses by Indonesian financial watchdog Commodity Futures Trading Regulatory Agency, or Bappebti. The Indonesian government sees the exchange as a means of protecting consumers as interest in digital currencies...

The Indonesian government is planning to establish its envisaged “crypto stock exchange” by the end of 2022, DealStreetAsia cited the country’s deputy trade minister Jerry Sambuaga as saying.

Originally set to launch in 2021, the realisation of the bourse was postponed due to the “complexity” of the process, the report said.

The exchange is meant to exclusively list companies in the digital asset industry, and only those which have been granted licenses by Indonesian financial watchdog Commodity Futures Trading Regulatory Agency, or Bappebti.

The Indonesian government sees the exchange as a means of protecting consumers as interest in digital currencies has risen, according to the report.

Lot of requirements

“Creating a bourse needs many preparations,” Sambuaga said.

“We need to see which entities should be included in the bourse. Secondly, we need to validate the said entities. Thirdly, there is a minimum capital and other requirements related to custodian, depository and technical things,” he added.

Indonesia allows the trading of crypto assets as commodities but does not recognise crypto as a payment instrument. In April this year, the Indonesian Directorate General of Taxes said it had set income tax on capital gains from crypto investments and value-added tax on crypto purchases at 0.1 per cent.

No crypto ban like in China

Still, the situation for crypto users remains confusing in Indonesia. The country’s Financial Services Authority OJK warned that financial firms are not allowed to offer and facilitate sales of crypto assets.

However, the country’s trade minister Muhammad Luthfi said in September last year that the Indonesian government will not ban cryptocurrencies as China did.

Nonetheless, Indonesia’s top Islamic body, the country’s authority on Shariah compliance, has declared cryptocurrency haram, or forbidden, for Muslims under Islamic law.

Crypto transactions in Indonesia increased by 1,224 per cent to 859.4 trillion rupiah ($57.7 billion) in 2021 from 64.9 trillion rupiah 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 212 trillion rupiah.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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