Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) recently disclosed a deadline extension for crypto exchanges that have yet to meet the licensing requirements, qualifying them as full-fledged Physical Crypto Asset Traders.
Per an official statement, exchanges operating in Indonesia have until the last week of November 2024 to comply with the updated regulatory standards.
Noteworthily, the update follows Bappebti’s third amendment of its rules governing the organization of crypto asset trading introduced in 2021. The 2021 legislation is in line with Bappebti Regulation No. 9 of 2024.
According to the updated regulations, registered exchanges (CPFAKs) must transition from provisional status to fully licensed PFAKs to continue operating within the country. However, achieving this transition entails meeting certain regulatory obligations, including joining the Futures Exchange and the Crypto Futures Clearing House.
These new regulations aim to reduce investment risk and monitor transactions closely for taxation, consequently improving the safety of digital asset trading in Indonesia.
Opportunity for More Crypto Exchanges to Enter the Indonesian Digital Space
With the deadline extension, Indonesia hopes to grant potential crypto exchanges more time to complete the required obligations.
Furthermore, the extension also enables more efficient participation for players in the crypto market. Notably, before the inception of this regulation, legal entities and commercial enterprises were not permitted to trade crypto assets. Meanwhile, the extended deadline made these entities eligible to participate in the crypto marketplace.
Thus far, around 30 exchanges have applied for licenses. Some, like Binance’s subsidiary Tokocrypto, are fully licensed in Indonesia, while others are still awaiting approval.
Oscar Darmawan, CEO of leading crypto exchange INDODAX, praised the deadline extension, stating, “We warmly welcome this decision, as it provides space for more exchangers to fulfill their obligations under applicable regulations. This will also help strengthen the crypto industry as a whole by ensuring that every exchanger complies with the standards that have been set.”
