Indonesia Mandates Registration for Crypto Exchanges on National Commodity Future Exchange
In Brief
Indonesian government obligated all cryptocurrency exchanges to undergo registration on the national cryptocurrency asset exchange, CFX.
Government of Indonesia announced that cryptocurrency exchanges operating within the country must undergo registration on the Commodity Future Exchange (CFX), which serves as Indonesia’s national cryptocurrency asset exchange.
The registration deadline for the companies is set before August 17, 2024. In the event of non-compliance, the entities will be unable to continue their operations in the country.
As per local regulations established in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency, all crypto exchanges operating in the country must seek authorization.
The introduction of the authorization regime categorized previously existing legal cryptocurrency exchanges in Indonesia as “prospective”. To gain recognition as legitimate entities associated with the CFX, these firms have to undergo rigorous checks. Presently, there are 29 prospective cryptocurrency exchanges in Indonesia that are seeking authorization.
Indonesia introduced CFX, the world’s first national exchange for digital assets, earlier this year. The exchange is structured to function similarly to traditional stock exchanges such as NASDAQ, with a specific emphasis on digital assets.
The primary objective of the CFX is to enhance the safety of the cryptocurrency ecosystem for investors. Government plans indicate that the exchange will also play a role in monitoring digital asset transactions for tax-related purposes.
Indonesia Experiences Soaring Interest for Crypto
The introduction of CFX was a reaction of the Indonesian government to the substantial local interest in cryptocurrencies that country experienced in recent years.
Official data from 2023 indicates that in Indonesia, there are over 18 million registered cryptocurrency traders, surpassing the approximately 12 million stock traders as reported by the Futures Exchange Supervisory Board.
Recently, Indonesian vice-presidential candidate Gibran Rakabuming Raka announced the country’s plans for growing of blockchain experts, cybersecurity professionals and cryptocurrency experts. This emphasizes the expanding role of cryptocurrencies in the country’s development and their potential relevance in the upcoming elections.
In a significant move to regulate the cryptocurrency landscape, the Indonesian government has proposed new regulations marking a crucial step toward ensuring investor safety and monitoring digital asset transactions for tax purposes in the rapidly growing digital landscape within the country.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
