Thus, Indonesian officials plan to “protect” crypto exchange clients.
Representatives of the Ministry of Commerce and the Commodity Futures Trading Regulatory Agency at parliamentary hearings in Jakarta on Tuesday said that the leadership of crypto exchanges should be mainly local residents.
So, at least two-thirds of directors and authorized persons on cryptocurrency exchanges must be Indonesians living in the country.
“That way, at least we can stop them from fleeing the country if there are any problems,” said acting head of the agency Didid Noordiatmoko.
No date has yet been announced for the entry into force of the revised regulation.
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The government is tightening laws for crypto exchanges so that Asian authorities can force the founders of cryptocurrencies to cooperate with the investigation. For example, Do Kwon, co-founder of the Terraform Labs ecosystem, the collapse that sparked a $60 billion crypto crash, has fled Singapore. South Korean prosecutors had to seek help from Interpol for his arrest.
Indonesian Deputy Commerce Minister Jerry Sambuaga also detailed other planned changes in the area:
- The minimum capital requirements for cryptocurrency exchanges will gradually double to $6.7 million in line with their growth.
- Exchanges will be prohibited from reinvesting crypto assets.
- User money must be held in third-party bank accounts.
In early September, the Indonesian government announced its intention to launch a state-owned cryptocurrency exchange by the end of 2022, as it sees great prospects in the development of the sphere. The initial launch was generally scheduled for last year, but it was postponed.
“This is proof that we are being careful. We do not want to rush, so as not to miss anything. We need to select the organizations that will be included in the exchange, check them. We also need capital and the provision of some technical things,” said Indonesian Deputy Trade Minister Jerry Sambuaga.
According to the Indonesia Commodity Futures Trading Regulatory Agency, the number of cryptocurrency asset transactions in the country reached Rs 859.4 trillion in 2021, up 1224% from Rs 64.9 trillion in 2020. Transactions in January-June 2022 amounted to 212 trillion rupees, and the number of cryptocurrency consumers reached 15.1 million people until June 2022.
Source: Bloomberg, Dealstreetasia
