[1/2]Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration//
JAKARTA, July 21 (Reuters) - Indonesia has launched a national crypto asset exchange to provide regulators with transaction records and better protect crypto investors, the government announced this week.
The launch of the clearing house is also aimed at strengthening monitoring of the booming sector amid a transition in regulatory oversight, according to the Commodity Futures Trading Regulatory Agency (Bappebti).
Indonesia prohibits the use of cryptocurrencies as a means of payment, but allows investment in the assets. Such investment skyrocketed during the pandemic, with data showing that as of June, 17.54 million people in the country had invested in digital assets, more than the number of registered investors on the stock market.
However, rising global interest rates have dampened demand for crypto assets in recent months.
Crypto transactions in Indonesia during the January-June period decreased 68.7% from the same period last year to reach 66.44 trillion rupees ($4.42 billion), with Tether, Bitcoin, Ethereum, Ripple and Binance Coin being the most traded, according to Bappebti.
The new exchange will list existing licensed crypto companies such as Binance's Tokocrypto, Indodax and others as dealers.
PT Bursa Komoditi Nusantara will manage the exchange and PT Kliring Berjangka Indonesia will settle transactions there, Bappebti chief Didid Noordiantmoko said in a statement. PT Tennet Depository Indonesia has been appointed as the crypto asset storage manager.
a new law signed earlier this year called for the regulation, supervision and supervision of cryptocurrencies to be transferred to the Bappebti Financial Services Authorities, with a transition period of two years.
($1 = 15,026.0000 rupees)
Reporting by Bernadette Christina Munthe; Written by Gayatri Suroyo; Edited by Kanupriya Kapoor
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