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The Ministry of Trade Recorded 6,5 Million People Investing in Crypto As of May 2021

The value of investment transactions into crypto assets as of May 2021 reached IDR370 trillion, an increase of 5 times from the end of 2020

The Ministry of Trade (Kemendag) noted that crypto asset investors as of May 2021 have reached 6,5 million people with a transaction value of IDR 370 trillion. This increase is quite fantastic, considering that in the previous month it was recorded 4,8 million people with a transaction value of around Rp.237,3 trillion (January-April 2021).

This figure has exceeded the number of capital market investors on the Indonesia Stock Exchange, although the increase in investors here also continues to show an increasing trend.

As of February 2021, the IDX recorded the number of capital market investors reaching 4,5 million, an increase of 16,35% from the position at the end of 2020. These capital market investors consist of investors in stocks, mutual funds, and bonds. In further detail, the number of Single Investor Identification (SID) specifically for stocks is around 2 million people, an increase of 18,05% compared to the end of last year.

Minister of Trade Muhammad Lutfi said, the high public interest in digital money assets is the reason for the need for people to immediately learn how crypto asset trading works, before starting to engage in and make transactions to prevent losses due to not understanding the dynamics of crypto assets.

"Stay alert before transacting crypto assets," he said at the Managing Crypto Asset Fever-Investor Protection in Crypto Asset Trading, quoted fromCNBC Indonesia.

He continued, "We see the number of players in 2020 is 4 million people, in the number of months this year until May 2021 players in crypto assets have grown by more than 50% to 6,5 million people."

Last year too, judging from the trade transactions, it was only IDR 65 trillion and in five months it had grown five times to IDR 370 trillion.

Because the potential is still so large, the Ministry of Trade needs to properly regulate crypto asset transactions to create optimal regulations. “We will use policy sandbox. We will go first and at the same time we will improve the regulations to ensure the security and confidentiality of transactions.”

Currently, the government has set the Regulation of the Minister of Trade Number 99 of 2018 concerning General Policy for the Implementation of Crypto Asset Futures Trading and Regulation of the Head of CoFTRA Number 5 of 2019 concerning Technical Provisions for the Implementation of Crypto Assets and its amendments.

As for the list of crypto assets that can be traded, there are 229 cryptocurrencies that can be seen in CoFTRA Regulation Number 7 of 2020 concerning the Establishment of a List of Crypto Assets that can be Traded in the Physical Crypto Asset Market.

In addition, there are currently 13 Prospective Crypto Asset Traders registered with CoFTRA in accordance with CoFTRA Regulation No. 5 of 2019 concerning Crypto Asset Trading Guidelines and have been refined into CoFTRA Regulation No. 9 of 2019 and CoFTRA Regulation No. 2 of 2020 concerning Asset Trading Guidelines. Crypto on the Physical Exchange Market.

The Ministry of Trade will work closely with the Financial Services Authority (OJK), Bank Indonesia (BI), and stakeholders in crypto asset trading to ensure the convenience of transacting crypto assets and building a beneficial ecosystem.

"We will work together so that we together become a nation that can first enjoy the freedom to control crypto assets," he said.

On the same occasion, the Head of CoFTRA, Indrasari Wisnu Wardhana, targeted: futures exchange for crypto assets targeted to be formed by the end of this year. This is to accommodate the increasingly rapid development of crypto asset investment in the country.

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Currently the process of establishing an exchange for these crypto assets is in progress. "The stock exchange is in the process, our target is no later than the end of 2021, the exchange will be available and it's already running," said Indrasari.

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Header Photo: Depositphotos.com

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