Challenges Facing Indonesia's Crypto Exchanges Amid Global Competition

Indonesia's Financial Services Authority has revealed that 72% of licensed cryptocurrency exchanges in the country are currently unprofitable, despite having over 20 million users. According to NS3.AI, domestic exchanges are struggling to compete with international platforms due to higher tax and compliance costs, security concerns, and operational inefficiencies. The presence of well-funded global competitors and regulatory hurdles exacerbates the difficulties faced by local exchanges. Additionally, issues related to trust and lost tax revenue contribute to the structural pressures on the industry.