Heaptalk, Jakarta — Indonesia’s Commodity Futures Trading Regulatory Agency (CoFTRA) recently issued Regulation Number 9 of 2024, refining and expanding upon the stipulations of Regulation Number 8 of 2024. This regulatory enhancement permits institutional entities to engage in cryptocurrency trading.
The new framework allows institutional entities, such as businesses and legal entities, to access crypto trading services through certified Physical Crypto Asset Traders (PFAK). In more detail, Article 16A of the regulation mandates that PFAKs implement Know-Your-Transaction (KYT) principles and integrated travel rules. These requirements ensure trading activities’ security and regulatory compliance, particularly as more complex entities enter the market.
The head of Indonesia’s CoFTRA, Kasan, emphasized that the revised regulation aligns with global market trends as institutional interest in digital assets grows.
“This policy aims to expedite the development of Indonesia’s crypto market. With the increasing participation of institutional investors, we anticipate enhanced investment flows, job creation, and overall economic growth,”
The opening of cryptocurrency trading to institutional investors is anticipated to have a transformative impact on Indonesia’s crypto market. With large-scale capital entering the ecosystem, trading volumes are projected to rise substantially, boosting the market’s growth trajectory.
As is known, Indonesia’s CoFTRA reported that the archipelago’s crypto transactions reached US$21.7 billion, which is equal to Rp426.69 trillion, reflecting a 351% YoY growth. The institution recognized a substantial increase from Rp94.41 trillion during the same period last year.
National tax revenue from crypto asset trading has also contributed about Rp914.2 billion since 2022 up to September 2024. On the other hand, Crypto asset trading has become an increasingly popular choice among Indonesians, with the number of crypto customers reaching 21.27 million by September 2024.
In response to this matter, Robby, the Chairman of Aspakrindo-ABI, said, “The growth in the number of cryptocurrency investors and transaction volumes globally and Indonesia can serve as a benchmark for the success of these regulations. This growth continues monthly, surpassing even the number of stock market investors. This high demand for cryptocurrency can also be seen as a compelling factor for companies considering adopting crypto assets.”
