Indonesia launched its national crypto-asset exchange Commodity Future Exchange (CFX) this year. Now, Indonesia wants all crypto exchanges to register on the platform to continue operating.
It is reported that CFX operates similarly to traditional stock exchanges such as Nasdaq, but pays special attention to digital assets. The establishment of CFX is the Indonesian government’s response to the high local demand for cryptocurrencies. According to official data from 2023, there are more than 18 million registered cryptocurrency traders in Indonesia, while there are about 12 million stock traders.
Regulations introduced in 2019 by Indonesia’s commodity futures trading regulator Bappebti require all cryptocurrency exchanges operating locally to apply for authorization. Since 2014, all “legal” cryptocurrency exchanges operating in Indonesia have been classified as “potential cryptocurrency exchanges” due to the late introduction of the authorization system. Businesses must pass strict inspections to be recognized as legitimate businesses associated with CFX. The authorization process involves registration with a self-regulatory organization (SRO) such as CFX, which is then tested by Bappebti to determine whether the company is fit to operate.
Robby Bun, chairman of Indonesian crypto-asset trading association Aspakrindo, said that a cryptocurrency trading license (PFAK) will only be issued if all requirements are met. If new procedures and registrations are not completed by August 17, 2024, these crypto exchanges will not be able to operate in Indonesia, where there are currently 29 "potential cryptocurrency exchanges" that need to be authorized. (CoinDesk)