Indonesia’s Crypto Market Booms as Financial Sector Reforms Take Shape

• The Indonesian Financial sector is undergoing a comprehensive reform that extends to the cryptocurrency industry.
• The Commodity Futures Trading Regulatory Agency (Bappebti) in Indonesia will hand over oversight of crypto assets trading to the Financial Services Authority (FSA).
• The Indonesian cryptocurrency market is constantly growing, with new investors and an increase in the number of exchanges and user base.

The Indonesian Financial sector is undergoing a series of reforms that extend to the cryptocurrency industry. As part of the reform, the Financial Services Authority (FSA) will take over from the Commodity Futures Trading Regulatory Agency (Bappebti) in Indonesia as the regulator of cryptocurrency assets. According to Acting Chairman of Bappebti, Didid Noordiatmoko, the FSA will oversee the regulation of cryptocurrency assets over the next two years.

Bappebti is currently evaluating an additional 151 assets and 10 local coins, while 383 cryptocurrencies and 10 local coins are already being traded in Indonesia. Despite the 2022 bear market, the Indonesian cryptocurrency market is continuing to grow. Data shows that the country recorded 16 million cryptocurrency investors in the first eleven months of 2022, with an additional increase from the 11.2 million at the end of 2021. Additionally, the trading value dropped from 859 trillion rupiahs recorded in 2021 to 300 trillion rupiahs (worth 25.8 billion USD).

Moreover, the number of crypto exchanges and user base in Indonesia has increased rapidly in the last two years. Indodax, a leading crypto exchange, reached 5 million users in the summer of 2022. With the comprehensive reform of the financial sector in the country, it is expected that the Indonesian cryptocurrency market will continue to expand.