The Indonesia Ministry of Trade has authorized trading in 400 cryptocurrencies. Indonesians can now legally trade in these 400 coins on all approved exchanges.
Details of the Approved Coins
The Commodity Futures Trading Supervisory Agency (CoFTRA) approved the list, published via Regulation 11 of 2022. Some of the approved cryptocurrencies include ETH, Tezos (XTZ), Tron (TRX), and Sandbox (SAND). SHIB also made it onto the list. According to Didid Noordiatmoko, the Acting Chief of CoFTRA, the regulation would accommodate the need of prospective crypto traders in Indonesia.
Didid added that the list was approved following the growth in data on the number of customers and crypto transaction volumes that have been rising. According to Didid, the approved coins can be traded on crypto exchanges in Indonesia.
Improved Protection for Investors
Indonesia has been working to improve protections for crypto investors in a sector that has been growing rapidly. According to the minister of trade, the country’s young population gives it an edge in the crypto markets and the field of blockchain technology. In Indonesia, the stock exchange sees dismal trading volumes compared to Indodax, the crypto trading exchange. Today, Indodax is the largest crypto exchange in Southeast Asia.
The move to create a list of approved coins will give traders legal certainty, according to CoFTRA Chief Didid. Additionally, the new regulation will require asset traders that first list or delist any specified crypto coins to submit a written notification to CoFTRA. The new regulation revokes Regulation 7 of 2020, which only approved 229 crypto assets.
Crypto Trading in Indonesia
Indonesia is a leader in the area of crypto trading. Data shows that the Indonesia rupiah is the 17th largest fiat currency in BTC worldwide. However, it still comes second in Southeast Asia, just behind Singapore, the region’s financial center. The rapid expansion of the Indonesia crypto market has made it easy to offramp BTC or ETH into IDR.
Embracing Blockchain Technology
The recent moves in Indonesia are part of a broader effort to embrace the blockchain. The nation’s central bank is already working on a possible launch of a retail CBDC. As a result, the government has encouraged players in the nation’s crypto sector to innovate and educate the masses regarding digital assets.
What It Means for the Future
Unlike China, the leading economy in SE Asia, Indonesia has opted to embrace and regulate the crypto sector. China, on the other hand, opted to ban crypto trading while embracing the blockchain. Thus far, the nation is in the advanced stages of launching a blockchain-based currency.
