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The Indonesian government finally established a national cryptocurrency exchange after months of deliberation in order to create a transparent and equitable market environment for crypto assets and better protect investors. In accordance with a government declaration made on July 20, the market has been active since July 17. The country’s Commodity Derivatives Trading Regulatory Agency head, Didid Noordiatmoko, issued the following statement:
Noordiatmoko said that however, emphasized the erratic nature of cryptocurrencies and encouraged Indonesians to exercise caution when trading. The exchange wants to operate similarly to the New York Stock Exchange, a market where members of the public are able to trade assets in a secure environment under strict regulation. 17.54 million people in the nation currently use digital assets, pursuant to the official statement. That represents around 6.4% of the 273.8 million people in the nation.
Indonesia ranks as 20th country for crypto adoption
For such a big economy, Indonesia’s stance on cryptocurrencies is quite unusual. approving them as transactions but forbidding their use as a means of payment. The Southeast Asian nation hasn’t always been on the bleeding edge of technology and is considered to be among the most conservative throughout the world by certain standards. Indonesia only came in at position 75 out of 132 nations surveyed in 2022, per the Global Innovation Index.
There is a lot at stake because the Jakarta administration estimates that Indonesia’s economy may earn as much as $2.8 trillion from the use of technology by 2040. When it pertains to cryptocurrencies, the nation has defied the trend. In terms of adoption, it is currently ranked 20th in the world, surpassing far “tech-friendlier” countries. The most traded electronic currencies, according to the official announcement, were Tether (USDT), Ethereum (ETH), Bitcoin (BTC), and Ripple (XRP). An obvious indication that many people wish to use cryptocurrencies to benefit from the enduring value of the US dollar.
A nationwide crypto asset bourse was supposed to go live in 2021, but delays stopped the project from succeeding. Indonesia’s deputy trade minister, Jerry Sambuaga, said afterwards in September 2022 that the bourse will likely open at the end of the following year. The government claimed that now that the cryptocurrency asset exchange was running, it would give authorities access to data on transactions and guarantee strong investor protection.
To boost investor security and increase regulation of the cryptocurrency industry, the government of Indonesia has launched the nation’s crypto exchange and clearing house. After making its initial announcement in 2021, the new digital currency marketplace has now officially launched. According to the country’s Commodity Derivatives Trading Regulatory Agency – Bappebti, Indonesia’s cryptocurrency exchange started trading earlier this week. This development coincides with the government’s changeover in regulatory control. Indonesia’s finance minister, disclosed the government’s intentions to shift control of crypto investments to the Financial Services Authority (OJK) in November 2022. The Trade Ministry and Bappebti were in charge of regulating cryptocurrency activity in the nation of Southeast Asia.
According to a recent research by blockchain analysis company Chain analysis, India, which is the region leading Southern Asia and Oceania, there was $172 billion recorded in cryptocurrency transactions during July 2021 and June 2022, placing it fourth in the world for cryptocurrency adoption.
Inadequate Regulatory Frameworks The fact that cryptocurrencies are comparatively uncontrolled is one of the key obstacles preventing their widespread adoption.
Businesses should think about the advantages of using cryptocurrencies, such as improved security, lower transaction costs, and faster payments. Adopting cryptocurrencies could draw in new clients interested in using electronic payment methods.
Switzerland maintains to set the bar for financial innovation and has become one of the greatest crypto-friendly nations in the world.
According to market research, third-world countries may gain from prospective cryptocurrency use cases such as money transfers, microfinance, savings, and verification of identity.
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