Cyprus Mail
AsiaBusinessCryptocurrenciesInternational

Indonesia to tighten rules for crypto exchanges, ensure more local control

indonesia

Indonesia’s trade ministry plans to issue a new rule governing crypto asset exchanges, requiring two-thirds of the board of directors and commissioners to be Indonesian citizens and reside in the country, a deputy minister said Tuesday.

The measure comes following financial issues faced by Southeast Asia-focused cryptocurrency exchange Zipmex, which temporarily prevented users from withdrawing funds.

“We don’t want to give permits (to exchanges) carelessly, so only for those that meet the requirements and are credible,” deputy trade minister Jerry Sambuaga told reporters after a parliamentary hearing.

The ministry’s Commodity Futures Trading Regulatory Agency (Bappebti) will issue the new rule soon, he said, without giving a timeframe.

It will also require an exchange to use a third-party to store client funds and to prohibit exchanges re-investing stored crypto assets, according to a document issued by the ministry.

Bappebti acting head Didid Noordiatmoko told the parliamentary hearing that ensuring two-thirds of the board were Indonesians based in the country “could prevent the top management running away when a problem hits the exchange.”

Asked about a plan to launch an Indonesian crypto asset bourse, which has been delayed from last year, Sambuaga said the plan could hopefully be completed this year.

Cryptocurrency has gained popularity in Southeast Asia’s biggest economy with a total transaction volume of crypto assets up more than 1,000 per cent in 2021 at 859.4 trillion rupiah ($57.37 billion), according to Bappebti’s data.

($1 = 14,980.0000 rupiah)

Related Posts

With eye on Big Tech, energy crisis, EU telcos call for shared network costs

Reuters News Service

Economy and Competitiveness Council presents long-term strategy ‘Vision 2035’ to MPs

Source: Cyprus News Agency

Energy, inflation crises risk pushing big economies into recession, OECD says

Reuters News Service

McDonald’s hikes prices in Japan on higher input costs, weaker yen

Reuters News Service

Companies potentially affected by Italy’s election

Reuters News Service

Japan bans chemical weapons-related goods to Russia

Reuters News Service