Indonesia has announced plans to establish a national crypto exchange in 2023, according to a Bloomberg report, and the country also plans to place crypto under regulatory review by the Financial Services Authority (FSA).
Currently, digital assets are regulated by the Commodity Futures Trading Regulatory Agency, known in Indonesia as Bappebti. On Wednesday the acting head of Bappebti, Didid Noordiatmoko, said that the regulatory power over cryptocurrencies will move to the FSA by 2024, and the Indonesian exchange will be operational by that time.
While this move appears broadly supportive of crypto development in the world’s fourth most populous country, the Indonesian government has also signaled that it sees cryptocurrencies as a potential threat to its financial system. Bank Indonesia (BI), the country’s central bank, released a white paper on Dec. 1 which outlined their approach to a possible central bank digital currency (CBDC) in response to the growing influence of cryptocurrencies in the country.
“The future of the central bank is at a crossroads,” wrote BI Governor Perry Warjiyo. “Digital innovations may not only disrupt the banking system, but on a more pervasive scale, the possible disruptions on official currencies and central banking triggered by the advent of stablecoins and unbacked crypto assets.”
