Indonesia Extends Deadline for Crypto Exchange Licenses
In a key regulatory move, the Commodity Futures Trading Regulatory Agency of Indonesia, otherwise known as Bappebti, has extended its deadline for Indonesian crypto exchanges looking to meet the requirements necessary to obtain a license as a Physical Crypto Asset Trader. The extension gives exchanges until November 2024 in order to meet updated standards specified under Bappebti Regulation No. 9 of 2024.
Bappebti Regulation No. 9 of 2024: Key Changes
The new amendment extends the time by Bappebti for those exchanges to transition from their provisional status into fully licensed exchanges. According to the regulation, all exchanges are obliged to be a member of the Futures Exchange and the Crypto Futures Clearing House in order to be considered fully compliant.
The move has been welcomed by industry participants, and INDODAX, Indonesia’s largest crypto exchange, has supported the extended timeline.
Wider Exposure to Crypto Market
For the first time, the new regulation finally permits business enterprises and other legal entities to purchase and trade crypto assets. This could be a possible step to increase institutional exposure in the fast-growing crypto market of Indonesia. Hitherto, the same had been reserved for individual customers.
This could now lead to large investors and companies joining hands, making Indonesia a strong force in the global digital asset market.
Regulatory Cooperation and Investor Protection
Another step that Bappebti took was with the motive to make the crypto exchange ecosystem more transparent and secure. Today, exchanges have to comply with a Know Your Transaction standard and collaborate with Ditjen Dukcapil-a directorate general of Indonesia’s population and civil registration. This in return will increase regulatory oversight and protect institutional and individual investors alike.
According to Aldison, the head of Legislation with Bappebti, registration for non-compliant exchanges could be revoked for not complying with the new rules.
Major Players in Indonesian Crypto Market
Recently, Tokocrypto obtained a PFAK license, one of the very few exchanges to do so, from Binance’s subsidiary. Tokocrypto saw very rapid expansion in Indonesia: it has more than 4.5 million users, placing the market share of this platform at around 43%. The platform also cooperates hand in hand with law enforcers in combating crypto-related fraud.
Still, INDODAX has also experienced its share of challenges-for one, the major security breach in 2023 that snatched around $22 million in digital assets from them. That once again refers to the need for firm, effective regulation and timely compliance with the law.
