Bappebti Inaugurates the Establishment of the Indonesian Crypto Exchange

The Commodity Futures Trading Regulatory Agency (Bappebti) of the Ministry of Trade inaugurated crypto exchange establishment through Decree of the Head of CoFTRA Number 01/BAPPEBTI/SP-BBAK/07/2023 dated 17 July 2023 concerning Approval as a Crypto Asset Futures Exchange to PT Bursa Komoditi Nusantara.

Through a press release published yesterday (21/7), CoFTRA also appointed PT Kliring Berjangka Indonesia as a futures clearing institution for guaranteeing and settlement of crypto asset physical market trades. This appointment was issued through Decree of the Head of CoFTRA Number 01/BAPPEBTI/SP-LKBAK/07/2023.

Also, mandated PT Tennet Depository Indonesia as the manager of the crypto asset storage, through Decree of the Head of CoFTRA Number 01/BAPPEBTI/SP-PTPAK/07/2023.

"The establishment of exchanges, clearing and managers of crypto asset storage is proof that the government is present in an effort to create a fair and fair crypto asset trading ecosystem to guarantee legal certainty and prioritize protection for the public as customers," said Head of Bappebti Didid Noordiatmoko.

Separately, quoting from coil, Chairman of the Association of Indonesian Crypto Asset Traders (Aspakrindo) Teguh Kurniawan Harmanda explained, crypto exchanges have many functions, including to analyze and determine crypto price benchmarks based on demand and supply. In addition, crypto transactions will run more orderly, orderly and transparent.

He explained that the exchange will also receive reporting, facilitate transactions, market monitoring, product development, system recommendations and membership. As a result, crypto exchanges can build trust in crypto investments in the eyes of the public and investors.

Didid explained, the formation which was carried out during the transitional period of the Financial Sector Development and Strengthening Law (UU P2SK) focused on keeping the Indonesian crypto industry running and maintained, and being able to contribute to the economy. through state revenue.

In developing and strengthening exchanges, clearing and managing crypto asset storage, CoFTRA does not work alone. It cooperates with related ministries/institutions, especially OJK, BI, Ministry of Finance, and the wider community.

"Physical trading of crypto assets carries quite a high risk. By their very nature, the value of crypto assets can experience a very drastic increase or decrease in value in a short time. For this reason, a good understanding is needed in the community including the benefits, potential and risks of trading crypto assets."

On the one hand, last week (10/7), Commission XI of the DPR RI has appointed Hasan Fawzi as Chief Executive of Supervision of Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets, concurrently serving as a Member of the OJK Board of Commissioners for the 2023-2028 period.

This appointment continues from the passing of the PPSK Law in December 2022 which mandates the OJK as the regulator and supervisor of crypto assets. Before this regulation was ratified, the agency was under CoFTRA. Until now the transition of the transfer of supervision is still ongoing and there will be a PP draft as the basis.

Crypto asset development

Bappebti also explained the current condition of crypto assets as of June 2023. It was stated that there were an additional 141,8 thousand crypto asset customers. When accumulated, in that month the number of registered crypto asset customers reached 17,54 million people.

The transaction value was recorded at IDR 8,97 trillion, an increase of 9,3% compared to the previous month. The types of crypto assets that are widely traded are Tether (USDT), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Binance Coin (BNB). Meanwhile, the total transaction value for the January 2023-June 2023 period was recorded at IDR 66,44 trillion, down 68,65% on a year-on-year.

Didit said, the decline in transaction value was due to a number of factors, including the global crypto market experiencing a decrease in trading volume, the potential for a low liquidity crisis which had a negative impact on price stability and market efficiency, as well as soaring selling pressure which caused a correction in crypto asset prices.

The United States Government's Federal Reserve policy regarding increasing interest rates has caused changes in people's behavior from those who previously chose to transact digital assets to savings. In addition, currently the community is still waiting for government policies regarding the P2SK Law.

"However, from a technology standpoint blockchain, more and more companies such as Meta, Google, and Twitter are starting to integrate blockchain technology in their business activities. This proves that in the future the development of physical trading of crypto assets is still quite promising," Didid concluded.