Five Good News for Cryptocurrency Traders in Indonesia: Transactions Increase 113.05 Percent in Two Months |

8 months ago

Crypto asset trading on the Indonesian Futures Exchange is becoming increasingly enthusiastic following the improvement in prices of a number of cryptocurrencies in 2024. There are several important notes that should be of concern to cryptocurrency investors, both in Indonesia and foreign investors who will do business in Indonesia.

First, the Indonesian government is increasingly welcoming cryptocurrency trading as a digital asset. Bappebti shares efforts to support the crypto asset ecosystem. Starting from establishing a crypto asset exchange, two crypto asset clearing institutions, and two depository institutions in the period 2023 to 2024.

Second, 2024 is an important year for crypto asset trading in Indonesia. In the near future, authority over crypto assets will shift from CoFTRA to the Financial Services Authority (OJK). Therefore, the party wants to ensure that the transfer will run smoothly without shaking up the crypto asset industry.

"One of them is by ensuring that the current crypto asset ecosystem is running and encouraging the growth of the crypto asset industry in Indonesia," emphasized crypto trading official in Indonesia, Olvy Andrianita.

Third, in 2024 it is estimated that the prices of the majority of crypto assets will increase. This is in line with the Bitcoin halving phenomenon which encourages transactions to become more active. Moreover, based on Bappepbti's records, the value of physical trading transactions for crypto assets in February 2024 was recorded to have increased by 56.22 percent to IDR 33.69 trillion compared to January 2024.

The total transaction value for January-February 2024 was IDR 55.26 trillion or an increase of 113.05 percent compared to the same period in 2023 of IDR 25.94 trillion year-on-year (yoy).

Fourth, the number of registered crypto asset customers as of February 2024 was 19.18 million customers, with an average increase in the number of registered customers of 427.2 thousand customers per month since Bappepbti recorded this data in February 2021. Customers who actively transact on the platform CPFAK for the February 2024 period had 715.6 thousand customers.

Please note, supervision of cryptocurrency transactions in Indonesia is under the Commodity Futures Trading Supervisory Agency (Bappebti). This institution issued Circular Letter (SE) Number 47/BAPPEBTI/SE/03/2024 concerning Confirmation of the Implementation of Physical Market Trading in Crypto Assets.

Bappebti explained that the Circular Letter was useful as confirmation for optimizing the crypto asset ecosystem traded on the Futures Exchange. Bappebti admits that it wants to prevent potential illegal investments, as well as encourage transparent, effective and efficient crypto asset trading on the market.

"The current crypto asset ecosystem is a representation of the spirit of the Indonesian government and with SE Number 47/BAPPEBTI/SE/03/2024, Bappebti seeks to realize crypto asset trading that is orderly, fair, efficient, and able to support healthy business competition. In addition "It is hoped that the crypto asset ecosystem will strengthen protection for customers/the public from illegal investments and at the same time provide business certainty for crypto asset market players," said Acting Head of CoFTRA, Kasan, in a written statement Thursday (21/3/2024).

Head of the Legislative Regulations and Enforcement Bureau, Aldison, added that the Circular Letter is an affirmation to business actors in the physical market trading sector of crypto assets that they have obtained permits from Bappebti. Bappebti wants the implementation of the physical market for crypto assets in Indonesia to become a reliable and transparent commodity trading facility, but still safe for people who want to become crypto asset customers.

Business actors who have received registration as Prospective Crypto Asset Physical Traders (CPFAK) from Bappebti are expected to immediately submit a letter requesting approval as Physical Crypto Asset Traders (PFAK) to Bappebti in accordance with the provisions of laws and regulations in the field of physical crypto asset markets.

"As a party that has a strategic position in crypto asset trading, CPFAK must pay attention to the time limit for becoming a PFAK and immediately fulfill all the required conditions," added Aldison.

Fifth, there are more and more prospective exchanger companies or CPFAK in Indonesia. According to Olvy, currently there are 35 registered CPFAK companies and most of them are in the process of becoming PFAK. The types of crypto assets that are mostly transacted based on transaction value in physical trading of crypto assets during February 2024 are Tether (USDT), Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Render Token (RNDR).

"All crypto asset institutions must immediately carry out their duties and functions. This is so that physical trading of crypto assets in Indonesia grows significantly. Don't let us miss the moment because more and more crypto asset transactions will occur this year," concluded Olvy.

Well, all good news for cryptocurrency traders.[]