Indonesian Crypto Exchanges Must Register With New Bourse or Face Shutdown

Indonesia launched the world's first national bourse for crypto assets this year. Now, the country wants all crypto exchanges to register with the platform to continue operating.

The bourse, called the Commodity Future Exchange (CFX), is the Indonesian government's response to the high local demand for crypto. While the stated goal of the bourse is to make the crypto ecosystem safer for investors, government plans show the exchange is also expected to help track digital asset transactions for tax purposes.

Regulations introduced in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti) require all crypto exchanges operating in the country to seek authorization.

All 'legal' crypto exchanges operating in Indonesia since 2014 are lumped into one category called "prospective crypto exchanges" because the authorization regime came later. Firms have to go through stringent checks to win recognition as legitimate enterprises linked to the CFX.

The authorization process involves registration with self-regulatory organizations (SRO) like the CFX and later a test by Bappebti to determine a company’s fitness to operate.

A crypto exchange license (PFAK) is only issued if all requirements are met, said Robby Bun, chairman of the country's crypto asset trade association, Aspakrindo.

Without completing the new procedures and registrations, prospective crypto exchanges cannot operate in Indonesia.

"There is a deadline for prospective crypto exchanges. If they do not register by the specified time, they will automatically be unable to operate in Indonesia," Robby said, adding that the deadline is Aug. 17, 2024. If they want to continue operating, crypto exchanges must also obtain licenses, Robby said.

In Indonesia, there are 29 prospective crypto exchanges that will require authorization, Subani, chairman of CFX, said in an interview.

"All transactions within these prospective crypto exchanges are diligently reported and monitored. Our primary objective is to ensure a smooth transition from being a prospective crypto exchange to becoming a fully recognized crypto exchange," Subani said.

(Source: CoinDesk)