Indonesia to tighten crypto regulation with stricter rules for exchanges – regulation Bitcoin News

Indonesia is preparing to issue new rules to tighten regulation of cryptocurrency exchanges. Under the revised regulatory framework, his two-thirds of the directors of the cryptocurrency exchange must be Indonesians residing in Indonesia.

Indonesia Plans To Tighten Crypto Regulations

Indonesia is preparing to issue new rules to tighten regulation of cryptocurrency exchanges, said the country’s trade minister and officials from the Commodity Futures Trading Regulatory Authority (Bappebti) during a parliamentary hearing in Jakarta on Tuesday. said at the meeting.

One of the new regulations requires two-thirds of the directors of cryptocurrency exchanges to be Indonesians residing in Indonesia. Bappebti’s deputy secretary general, Didid Noordiatmoko, told parliament:

That way, at least if there is a problem, the top can be prevented from fleeing the country.

The new measure follows the financial difficulties faced by Southeast Asia-focused cryptocurrency exchange Zipmex, which had to suspend withdrawals.

Crypto exchanges will also be required to use third parties to store client funds.

Deputy Trade Minister Jerry Sambuaga told reporters after the parliamentary hearing:

I don’t want to give permission (to exchanges) carelessly, so I only allow things that meet my requirements and I trust.

He pointed out that Bappebti will issue new regulations soon, without giving a specific timeframe.

Sambuaga also confirmed that the Indonesian government plans to launch a cryptocurrency exchange this year as well. The launch of the stock exchange has been delayed several times.

Indonesia allows cryptocurrencies to be traded as commodities, but does not recognize crypto as a means of payment. In April, the Indonesian Directorate General of Taxation announced that it had set both income tax (PPh) on capital gains from cryptocurrency investments and value added tax (VAT) on cryptocurrency purchases at 0.1%.

According to Bappebti, cryptocurrency trading in Indonesia grew 1,224% from Rp64.9 trillion in 2020 to Rp859.4 trillion ($57.5 billion) in 2021. In the first half of this year, he had 15.1 million cryptocurrency users in Indonesia trading Rp 212 trillion worth of cryptocurrencies.

What do you think of the new requirements for Indonesian cryptocurrency exchanges? Let us know in the comments section below.

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