Crypto exchanges must obtain an exchange license (PFAK) from Indonesia's national bourse to operate legally in Indonesia.
Indonesia is requiring all crypto exchanges to register with its national bourse to continue operating.
The Commodity Future Exchange (CFX) aims to operate like traditional stock exchanges but focuses specifically on digital assets. It was created in response to the high local demand for crypto, with Indonesia having over 18 million registered crypto traders compared to 12 million stock traders.
Indonesia launched the world's first national bourse for crypto assets this year, which aims to enhance investor protection and enable the government to track digital asset transactions for tax purposes.
Crypto exchanges operating in Indonesia since 2014 are categorized as "prospective crypto exchanges" and must undergo stringent checks to become legitimate enterprises linked to the CFX.
The authorization process involves registration with self-regulatory organizations like the CFX and a test by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti).
Exchanges must obtain a crypto exchange license (PFAK) to operate legally in Indonesia. The deadline for prospective crypto exchanges to register is August 17, 2024.
There are currently 29 prospective crypto exchanges in Indonesia that require authorization, including top exchanges like Tokocrypto, Indodax and Upbit.
Registration with the CFX allows the government to monitor cryptocurrency transactions for tax purposes.
A future regulatory overhaul in 2025 may shift the regulation of crypto from Bappebti to the Financial Services Authority (OJK), potentially reclassifying crypto as securities. However, this could bode well for cryptocurrency investors, with lesser taxes compared to classifying cryptocurrencies as commodities.
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