The government of Indonesia is aggressively bidding to obtain a global lead in the trading of digital assets, announcing plans for new market infrastructure and the launch of the crypto stock exchange by the end of 2022.
The platform was supposed to be launched in 2021 but was delayed. The move intends to boost Indonesia’s credentials as a crypto-friendly nation and will be used by other crypto trading firms that have applied for licenses to lawfully trade on future exchanges.
“We will make sure that every requirement, procedure, and the necessary steps have been taken.” Said Jerry Sambuaga, the deputy minister of trade in Indonesia.
Bourse launch will be done carefully
The market exchange will be mainly based on blockchain distributed ledger technology, which will also include a thorough assessment of entities that intend to offer integrated post-transaction services such as asset custody.
“This is proof that we are being careful. We don’t want to be hast as it causes us to miss something. Creating a bourse needs many preparations. We need to see which entities will be included in the bourse. Secondly, we need to validate the entities” the deputy trade minister said while addressing the NXC International Summit 2022.
Despite skepticism among regulators globally, Indonesia has sought to gain an advantage in the industry of emerging financial digital assets. A few days ago, PT GoTo Gojek Tokopedia Tbk, one of the largest technology firms in Indonesia, purchased a local cryptocurrency business, PT Kripto Maksima Koin for $8.4 million. The GoTo CEO said the move intends to diversify Indonesia’s currency management hub.
“We believe that blockchain technology may play a mainstream role in the future of finance,” the GoTo CEO said in the statement late Monday
Crypto start-ups attracted to Indonesia
Crypto start-ups are also attracted to Indonesia due to its friendly regulatory and tax environment, which includes initiatives to remove obstacles that prevent traditional banks from providing services to crypto companies. Bitcoin in Indonesia has been recognized as a commodity and the regulatory standards for cryptocurrency exchanges have also been classified.
Data provided by the Blockchain Association of Indonesia, claims the number of investors has risen by 280% since 2020, from 1.5 million to 4.2 million, with a day-to-day trading volume reaching $117.4 million.
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