- The Indonesian government is making plans to launch a national crypto exchange.
- The move is one of the many attempts by sovereign governments to embrace the nascent crypto industry.
Indonesia is looking to launch a national crypto exchange that will be solely responsible for crypto trading in the region. According to local news outlet Tempo, Indonesia’s Commodity Futures Trading Supervisory Agency (CFTRA), popularly known as Bappebti, intends to introduce this crypto exchange for the trading of Bitcoin (BTC), Ethereum (ETH) among others before the end of July.
Bappebti head Didid Noordiatmoko clarified that some discussions related to the launch of the digital asset trading platform are already ongoing.
Precisely, rules for the stock exchange have been discussed and decided upon as well as Know Your Customer (KYC) procedures. CFTRA has tested the integrated application which the agency plans to utilize for the trading process on the exchange. Didid explained that the system integration tests between traders, exchanges, clearinghouses, and depository were conducted on Thursday, July 13th, 2023.
The agency plans to limit the sales of digital assets to local transactions while also keeping them in line with global market advancement. Based on Tempo’s report, these would include the question of crypto prices, provided Bappebti approves them. In the meantime, Zulkifli Hasan, Indonesia’s Minister of Trade has been informed of the latest development by the agency. All that is left is for Bappebti to sign the permit, which will give licensed traders one month to join the exchange.
Beyond Crypto Exchange: Governments Show Growing Interest in Crypto
Markedly, this is not the first time Indonesia is mulling the idea of introducing a national cryptocurrency exchange. The initiative started in 2021 when the owners of a state-backed telecom firm in Indonesia announced a joint venture with leading digital asset service provider Binance to launch a joint cryptocurrency exchange. In 2022, the Indonesian government hinted at the launch of the exchange before the end of the year.
The decision was made after considering the surge in the number of Indonesians pivoting towards virtual assets and currencies. At that time, Jerry Sambuaga, the country’s deputy trade minister, confirmed that most of the hard work had been completed.
“We will make sure that every requirement, procedure and the necessary steps have been taken,” Jerry added. “This is proof that we are being careful. we don’t want to be hasty as it may cause us to miss something.”
Then again, at the beginning of this year, the Indonesian Ministry of Trade resumed talks about the exchange with plans to launch in June. However, by the end of June, no national crypto exchange was launched in Indonesia. With July now projected as the latest date for the debut of this project, many analysts and industry stakeholders are patiently waiting.
Generally, the governments of many nations are becoming more interested in the crypto sector and this is pushing them to design more regulated approaches to guide the growing industry. Apart from the introduction of national crypto exchanges, countries are now positively focused on launching a national digital currency. The sixth annual survey conducted and published by Bank for International Settlements (BIS) shows that 98% of central banks across the world are currently developing a Central Bank Digital Currency (CBDC).