Indonesia to set up cryptocurrency exchange to reform crypto regulation

Indonesia plans to launch a national cryptocurrency exchange in 2023 as part of its regulatory reform adopted by the Indonesian House of Representatives on December 15, according to a report from Bloomberg.

This reform involved shifting regulatory oversight over the industry in the country. Before the reform, Bappebti, a commodities-focused agency, had jurisdictional power over the cryptocurrency space in Indonesia.

The new policy has equipped the Financial Services Authority (FSA) with the legal backing to regulate the industry for the next two years. With the reform, Indonesia aims to embrace cryptocurrency and provide related services for citizens of the country.

Alongside the introduction of a national cryptocurrency exchange, Indonesia is also working on the introduction of a Central Bank Digital Currency (CBDC). Last December, the bank of Indonesia, through its Governor, revealed the pilot design for the virtual rupiah. The apex financial body in Indonesia affirmed that the virtual rupiah would become available soon.

There were 16 million cryptocurrency investors in Indonesia in the first eleven months of 2022, an increase from 11.2 million at the end of 2021. However, last year, the trading value dropped to around 300 trillion rupiah ($19.2 billion) from 859 trillion rupiah  ($54.9 billion) a year earlier.

Recall that in 2017, the Indonesian government placed a ban on cryptocurrency payment but permitted legal premises for the trading of virtual assets.

Countries preparing for cryptocurrency regulation in 2023

Countries such as Morocco, Nigeria, and Israel are working to introduce crypto regulations in 2023. Attention will be paid to the regulatory frameworks of countries like the United States and the United Kingdom. In the U.S., the cryptocurrency community is on the watch out for the rectification of the Lummis-Gillibrand crypto bill this year.