Jul 21, 2023 05:05
The Indonesian
commodities futures regulator has established the country's official
cryptocurrency exchange as part of the efforts to regulate the fast-growing
digital asset space. Additionally, the regulator has established a clearing
house for digital assets.
The Commodity
Futures Trading Regulatory Agency (CoFTRA) made the announcement yesterday
(Thursday). In the statement, the regulator also noted that it had created an
official platform for storing digital assets in the country.
Indonesia Crypto
Regulations
The latest
development is part of the efforts by the CoFTRA to regulate the fast-growing digital asset
space. According to the market watchdog, the number of registered crypto
users in the country is 17 million from a population of approximately 300
million. The crypto bourse and clearing house were initially planned to be
launched before the end of 2021 but were postponed severally, the latest being
in June.
Commenting about
the launch of the new platforms in a statement
translated from Indonesian, the Head of the CoFTRA, Didid Noordiatmoko, said:
"The establishment of the exchanges, clearing house, and managers of the crypto asset depository is a poof that the Indonesian government is present in an
effort to create a fair crypto asset trading system that guarantees protection
to the public."
CoFTRA's Crypto
Regulations
Additionally, the CoFTRA is planning to work with other financial institutions, including the
Bank of Indonesia, the Financial Services Authority, and the Ministry of
Finance, to mitigate the risks associated with the trading of digital assets.
The regulator is also planning to engage the public to identify such risks.
"By their
nature, crypto assets can experience a very drastic increase or
decrease in value in a short time. For this reason, a good understanding in the
community is needed, including the benefits and the potential risks of trading
the digital assets," Noordiatmoko added.
In June alone,
Indonesians transacted IDR 9 trillion (USD $600 million) worth of cryptocurrencies, a 9% increase
compared to the transactions of the previous month, the CoFTRA noted. Additionally,
the number of crypto users increased by more than 140,000 in the period. The
popular cryptocurrencies traded in the archipelagic state include Tether, Bitcoin, ether, XRP, and Binance Coin.
This article was written by Jared Kirui at www.financemagnates.com.
World Crypto Global
