Crypto asset trading in February 2024 has reached IDR 33.69 trillion. There were 350,000 new investors that month.
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Invited guests stand in front of the CFX (Commodity Future Exchange) logo during the inauguration of Indonesia’s crypto asset exchange in Jakarta on Friday (28/7/2023).
It has been more than eight months since Indonesia has had a crypto asset futures exchange which was officially established in July 2023. Slowly, the crypto asset ecosystem is also being formed, starting from regulations, exchange organizers, depository managers, institutions underwriting and settlement trading physical market crypto assets. Not to forget, physical crypto asset traders and investors are also growing.
Based on data from the Commodity Futures Trading Supervisory Agency (Bappebti), the value of crypto asset trading transactions in February 2024 has reached IDR 33.69 trillion or an increase of 56.22 percent compared to the previous month. The total transaction value from January to February 2024 reached IDR 55.26 trillion or an increase of 113.05 percent on an annual basis.
In line with the growth of transaction values, the number of cryptocurrency asset investors also increased by 1.6 percent compared to January 2024, reaching 19.18 million investors. It is recorded that there are around 350,000 new investors who started to delve into cryptocurrency asset trading in February 2024, which is a significant increase compared to the December-January 2024 period, where the number only increased by 32,000 people.
Also read: Government Completes Crypto Ecosystem
Although showing a positive trend, the development of crypto assets is not free from risks, especially price volatility. The disclosure of Sam Bankman-Fried’s scandal, the founder of the crypto asset management company FTX, related to fraud with losses reaching 8.7 billion US dollars, as well as the case of money laundering by Changpeng Zhao, the founder of the crypto asset management company Binance, also adds to the risks related to governance and legal certainty aspects in the crypto asset ecosystem.
To provide clarity on the trading ecosystem of crypto assets in physical markets, Bappebti has just issued Circular Letter (SE) Number 64/BAPPEBTI/SE/04/2024 regarding the Clarification of Implementing the Trading of Crypto Asset Physical Markets in Futures Exchange. This regulation is expected to form a more competitive and trustworthy ecosystem.
“This (issuance of the regulation) is one of Bappebti’s efforts to realize a more mature cryptocurrency asset ecosystem in driving the growth of regulated, fair, and transparent physical cryptocurrency asset trading markets. The rapid and dynamic development of cryptocurrency asset trading demands a stronger ecosystem that can meet current market needs,” said the Acting Head of Bappebti, Kasan, in an official statement on Monday, April 8, 2024.
Daniel Kertusha (21) approaches his face to Orb, an iris scanning device used by the company Tools for Humanity to collect biometric data of the owners of the cryptocurrency Worldcoin (WLD) in Barcelona, Spain, on August 4, 2023.
The SE is a derivative of the implementation of Regulation Bappebti Number 13 of 2022 concerning Amendments to Bappebti Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset Trading in Futures Exchanges. In addition, Bappebti also decided to terminate the cooperation between PT Bursa Komoditi Nusantara and PT Kliring Berjangka Indonesia.
Thus, the cryptocurrency asset trading ecosystem will be more inclusive and integrated, considering it is also one of the benchmarks for the development of cryptocurrency asset trading. Currently, the cryptocurrency asset ecosystem in Indonesia is supported by three institutions that support physical trading of cryptocurrency assets.
The three institutions mentioned include a cryptocurrency futures exchange carried out by PT Bursa Komoditi Nusantara, a futures clearing institution for guarantee and settlement of cryptocurrency asset trading by PT Kliring Komoditi Indonesia, and a cryptocurrency asset storage provider, namely PT Tennet Depository Indonesia and PT Kustodian Koin Indonesia.
Also read: Indonesia has the opportunity to become an Asian Crypto Hub
According to the applicable rules, both Physical Crypto Asset Trader candidates (CPFAK) and non-CPFAK are required to obtain a Letter of Approval from the exchange member (SPAB) from PT Bursa Komoditi Nusantara (CFX) first, in order to change their status to PFAK. These provisions have also been regulated in Bappebti Regulation No. 13/2022 concerning Amendments to Bappebti Regulation No. 8/2021 on Guidelines for Organizing Crypto Asset Trading in Futures Exchanges.
Until now, only four business entities have been designated as PFAK. The rest of the businesses are officially registered with Bappebti as CPFAK and non-CPFAK, with 35 CPFAK and one non-CPFAK respectively.
The four CPFAKs that have obtained SPAB from CFX are PT Pintu Kemana Saja (Pintu), PT Bumi Santosa Cemerlang (Pluang), PT Kripto Maksima Koin (Kripto Maksima – GOTO Group), and PT Aset Digital Berkat (Tokocrypto).
“Four crypto traders who have received SPAB from CFX contribute more than 50 percent of the total volume of crypto asset trading transactions in Indonesia,” said CFX Main Director Subani through an official statement received Kompas, on Monday (8/4/2024) evening.
We support Bappebti through our role as an exchange to maintain consumer safety.
Therefore, crypto exchange asked other CPFAKs to hurry up and register as PFAKs. Apart from being a commitment to providing services in accordance with industry standards, registration as a PFAK is also a form of compliance with regulations set by the government.
In accordance with applicable regulations, CPFAK must first submit a letter requesting approval to Bappebti and at the same time complete a number of specified requirements. After the requirements are met and they obtain SPAB from CFX, the CPFAK will go through a further process at Bappebti. To be able to hold PFAK status, one of them must also pass the fit and proper test stage
“CFX is committed to working with Bappebti and other stakeholders in creating a safe, transparent, and reliable cryptocurrency trading environment. We support Bappebti through our role as an exchange in maintaining consumer safety,” said Subani.
The atmosphere at Crypto Cafe in Kuta District, Badung Regency, Bali. In April 2023, the cafe started accepting cryptocurrency as payment for food and beverages.
The Ministry of Trade and Bappebti have launched a crypto asset exchange through Head of Bappebti’s Decree Number 01/BAPPEBTI/SP-BBAK/07/2023 approving CFX as a Crypto Asset Futures Exchange on July 17, 2023. In carrying out its duties, CFX operates like a traditional stock exchange with a primary focus on digital crypto assets.
Also read: Crypto Exchanges Prepare to Integrate Trading Transactions
In accordance with Law Number 4 of 2023 concerning Strengthening and Development of the Finance Sector (UU P2SK), the regulation and supervision of crypto assets will be transferred from previously under CoFTRA to the Financial Services Authority (OJK ). The transition and supervision will be carried out no later than January 2025.
In the transition process, three institutions, namely OJK, Bappebti, and Bank Indonesia, will form a special transition team. This team will be responsible for preparing various things needed related to the transition.
The expected outcome includes the wider and more efficient development of digital financial asset ecosystems and the utilization of this technology to drive innovation in the financial sector.
Chief Executive Supervisor Technological Innovation of the Financial Sector, Digital Financial Assets and Crypto Assets OJK Hasan Fawzi said, the draft government regulation (RPP) regarding the transfer of duties from CoFTRA to OJK has gone through the harmonization stage in Ministry of Law and Human Rights (Kemenkumham). Furthermore, it is hoped that the RPP can be published soon considering that the time to transition is getting shorter.
“In order to transfer the tasks and authorities of regulating and supervising digital financial assets and crypto assets, the Financial Services Authority (OJK) is currently coordinating with Bappbeti to prepare all necessary transition frameworks and supporting infrastructure, so that the transition process can run smoothly,” he said at the OJK Monthly Commissioner Meeting in March 2024 on Tuesday (2/4/2024).
Previously, the OJK held a discussion forum to gather various inputs from stakeholders related to the supervision and development of crypto assets in Indonesia. Deputy Chairman of the Indonesian Crypto Asset Trader Association (Aspakrindo), Yudhono Rawis, emphasized the importance of collaboration between industry players and regulators to strengthen regulations, maintain market integrity, and protect consumers in that event.
Tokocrypto’s Chief Marketing Officer, Wan Iqbal, presented a presentation on the opportunities and challenges of developing crypto assets in Indonesia at the “Indonesia’s Crypto Trend and Outlook 2024” event, which was held by Tokocrypto in a hybrid format in Jakarta on Wednesday (31/1/2023).
The transfer of the regulation and supervision of crypto assets to the OJK is a response to the rapidly growing crypto asset market. One of them is the development of crypto asset types that are currently traded, which has reached 545 types with 39 of them being local crypto assets. Along with this growth, potential risks emerge that need to be addressed by regulators in order to ensure market integrity and consumer protection.
“A strong synergy between regulators and industries is needed to create a healthy and innovative ecosystem for the digital financial assets, given the potential risks that accompany crypto assets,” he said in an official statement on Friday (5/4/2024).
Apart from supervision, the development of digital financial asset instruments is also no less important to pay attention to. Through block chain technology and tokenization, for example, traditional financial assets can be represented in the form of digital assets in a distributed ledgers-based ecosystem, which is expected to open the door to innovation in the financial sector. while contributing to national economic growth.
Also read: Crypto Investment Interest Supports Bitcoin’s Rise
According to Yudhono, the use of blockchain technology and tokenization in the future will continue to increase and will become one of the innovations that can be widely used in the financial sector ecosystem. Therefore, OJK needs to explore the potential of blockchain and tokenization so that more digital financial asset organizers, including crypto assets, are interested in developing this innovation.
“The expected results include wider and more efficient development of the digital financial asset ecosystem, as well as utilizing this technology to drive innovation in the financial sector,” said Yudhono.
Just like a pregnant mother, the existence of the cryptocurrency asset exchange in the country over the past eight months is approaching its birthing period. At that time, the cryptocurrency asset ecosystem is expected to mature further and even give birth to new breakthroughs while still prioritizing legal certainty aspects towards consumer protection and minimizing the space for various criminal acts.
Eight Months After the Crypto Exchange was Officially Established – Kompas.id
