Indonesia to Require Cryptocurrency Exchanges to Register with Country’s National Digital Asset Bourse
The Indonesian government has announced that all cryptocurrency exchanges operating within the country will be required to register with the newly established Commodity Future Exchange (CFX).
Launched earlier this year, the CFX is the world’s first national bourse dedicated to digital assets.
It aims to provide a safer environment for crypto investors while also serving as a platform to track digital asset transactions for taxation purposes.
The move comes as a response to the surging demand for cryptocurrencies in Indonesia, where the number of registered crypto traders exceeds that of stock traders, according to official data from 2023.
Under regulations introduced in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), all crypto exchanges operating in the country are required to seek authorization.
While exchanges that have been operating legally since 2014 fall under the category of “prospective crypto exchanges,” they must still undergo a rigorous process to gain recognition as legitimate entities associated with the CFX.
Beyond regulatory oversight, the registration requirement with the CFX serves as a gateway for the Indonesian government to monitor cryptocurrency transactions for tax purposes.
The authorization process involves registration with self-regulatory organizations (SROs) like the CFX, followed by scrutiny by Bappebti to assess the company’s suitability to operate.
Only after meeting all requirements can a crypto exchange be issued a crypto exchange license (PFAK).
Failure to complete the new procedures and registrations within the specified timeframe will result in the inability to operate in Indonesia.
The deadline for registration is set for August 17,
Read more on cryptonews.com
