Indonesia to launch a state-backed bitcoin exchange

Indonesian authorities will establish a platform for trading cryptocurrencies by the end of the year. According to Deputy Trade Minister Jerry Sambuaga, the initiative is aimed at protecting investors amid rising interest in digital assets, writes DealStreetAsia.

The crypto exchange was initially planned to launch in 2021, but the project was postponed.

Sambuaga attributed the decision to meticulous preparation of all processes—selection and screening of participants to meet the stated requirements.

According to the local regulator BAPPEBTI, by June the number of cryptocurrency users in the country had reached 15.1 million. The turnover of digital assets in 2021 amounted to 859.4 trillion rupiah ($57.6 billion).

Tokocrypto CEO Pang Hieu Kai (one of the 25 regulated platforms in the country) called the project a catalyst for Indonesia’s crypto ecosystem. He expects growth in investors, including among institutional players.

Earlier, Jump Capital analysts included Indonesia as one of the most promising jurisdictions for cryptocurrencies.

Since May 1, the country has levied VAT on crypto-asset transactions and capital gains tax on such investments at rates of 0.1% in both cases.

Legislation treats digital currencies as exchange-traded commodities but prohibits using them as a means of payment.

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