Indonesia has launched a national crypto asset bourse to open transaction records to regulators and protect crypto investors. As explained by the Commodity Futures Trading Regulatory Agency (Bappebti), the launch of the national exchange and clearing house is part of a larger effort of the Indonesian government to enhance the monitoring of the crypto sector during a shift in regulatory oversight.

In compliance with a legal provision from 2023, the Financial Services Authorities from Bappebti are now responsible for the regulation, supervision, and oversight of crypto in the country, following a two-year transition period. Before the official announcement of this news, Indonesia had already announced its decision to prohibit the utilisation of cryptocurrencies as a means of payment. However, Indonesians can still invest in such assets.

During the pandemic, cryptocurrency investments in the region saw a significant surge. According to the official statement, data from June 2023 indicates that around 17.54 million Indonesians had invested in digital assets. The figures are even more surprising as they reportedly surpass the number of investors officially registered with the stock exchange.

In recent months, following the rise of global interest rates, the demand for crypto assets has decreased. As outlined in the official press release, crypto transactions in Indonesia saw a decline of 68.7% during the January-June 2023 period, when compared to the corresponding period in 2022, resulting in a total of 66.44 trillion rupiah (USD 4.42 billion). According to Bappebti, Tether, Bitcoin, Ethereum, Ripple, and Binance Coin are among the most traded cryptocurrencies in the area.

Following the launch of the new bourse, licenced crypto companies such as Binance's Tokocrypto, or Indodax, among other traders, will be listed. Officials from Bappebti further added that PT Tennet Depository Indonesia will act as a crypto asset storage manager, while PT Bursa Komoditi Nusantara is expected to run the bourse and PT Kliring Berjangka Indonesia to clear the transactions. Recent developments in Indonesia Earlier in 2023, it was announced that India and Indonesia are presently engaged in exploring a potential link between their fast payments systems.

News of this development comes as earlier in 2023, India and UAE reached an agreement to not only link their payments systems but also trade in their local currencies, a move that is expected to facilitate financial transactions between the two countries. Such efforts come as part of a wider tendency towards de-dollarisation in the area. Earlier in 2023, the members of the Asian Clearing Union reportedly agreed to settle trade in local currencies.

The decision was motivated by a desire to enhance the stability of the global financial system by reducing reliance on currencies like the US dollar or the euro. .