The Indonesian government plans to roll out a formal digital asset exchange by the end of 2022. The plan is part of the government’s efforts to protect investors from the growing interest in digital currencies.
According to a Deal Street Asia report, the plan was leaked by Indonesian Deputy Commerce Minister Jerry Sambuaga while speaking at the NXC International Summit 2022 hosted by WIR Group in Bali.
The plan was drawn up at length, the outlet said. Initially planned for 2021, the so-called “Crypto Exchange” deployment has been postponed to the first quarter of 2022 but has still not been launched so far.
Sambuaga said the delay is due to the government’s careful consideration of the project and not any significant issues. Reviews include entities to be included in the project, minimum capital requirement, and technical and custodian requirements.
“We will ensure that all necessary requirements, procedures and measures have been taken. This is proof that we are careful. We don’t want to be in a rush because it might cause us to miss something. Establishing a stock exchange requires a lot of preparation,” he said.
Meanwhile, players in the Indonesian digital asset market welcomed the announcement. Commenting on the same event, Pang Xue Kai, Managing Director of one of Indonesia’s 25 licensed digital asset exchanges, Tokocrypto, said that an exchange could boost the whole ecosystem by attracting more participants. , more communities and more institutional investors.
In 2021, when the original plan was announced, Bloomberg reported that Binance, the world’s largest digital asset exchange, was involved. Binance was to partner with a consortium led by MDI Ventures, the venture capital arm of state-owned telecommunications company PT Telkom Indonesia, to set up the exchange.
Indonesia recognizes the potential of adopting digital assets
Several key players in the country have noted the growing interest in digital assets among investors in the country. Recently, GoTo, the country’s largest tech conglomerate, completed the acquisition of local crypto exchange PT Kripto Maksima Koin, for around $8.4 million to diversify its business.
Similarly, data from Indonesia’s digital asset market regulator, the Indonesian Commodity Futures Regulatory Agency, known as Bappebti, reveals that more than 11 million people in the country hold digital assets. The data showed that the country’s trade volume reached $57.7 billion in 2021, up more than 1,000 percent from 2020.
Despite its popularity, Indonesia still prohibits the use of digital assets as currency. The Indonesian central bank revealed in July that the design of its wholesale central bank digital currency, which will be an alternative legal tender, will be ready by the end of 2022.
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