This extension has been made under the newly revised government law, Bappebti Regulation Number 9/2024, bringing significant regulatory changes to the crypto industry.

The deadline for crypto exchanges to obtain this license is the last week of November 2024. However, this extension will only apply to exchanges that are already on the Potential CryptoAsset Physical Traders list.

The new regulations require crypto exchanges to cooperate with a government agency in Indonesia and implement “Know Your Transaction” (KYT) standards. Additionally, with this law, not only individuals but also corporate entities will have the opportunity to trade digital assets.

This opens the door for new investors to enter Indonesia’s rapidly growing crypto sector. This change, which allows institutional investors to trade crypto assets, is seen as a significant development that can increase liquidity and volume in the Indonesian crypto market.

Oscar Darmawan, CEO of INDODAX, one of Indonesia’s leading crypto exchanges, stated that giving crypto exchanges more time to comply with the standards set by the government will strengthen the industry, after Bappebti announced this extension.

Darmawan also stated that INDODAX is in the verification process required to obtain a license and they expect to receive approval from Bappebti soon. He also pledged that the company will fully comply with the new regulations.

Aldison, Head of Bappebti Legislative and Enforcement Department, explained that the new regulation offers a roadmap for regulating the crypto ecosystem in Indonesia.

According to Aldison, Regulation Number 9/2024 was created to provide broader opportunities for both individual and institutional investors in the digital asset market. This regulation also requires licensed crypto exchanges to cooperate with the General Directorate of Population and Civil Registration under the Indonesian Ministry of Internal Affairs.

However, crypto exchanges must be listed on the National Crypto-Asset Futures Exchange and become members of the Crypto-Asset Clearing House. Exchanges that do not comply with these requirements may face the risk of having their license applications revoked. With the implementation of these rules, the Indonesian crypto industry is aimed to achieve a more transparent, secure and strong structure.

In another press release published on October 18, Bappebti stated that he aims to establish a modern, adaptable and transparent crypto ecosystem in Indonesia.

Bappebti President Ir. Kasan emphasized that the regulations should keep up with the dynamics of the rapidly developing crypto market and stated that these new regulations will increase confidence in the sector. According to Kasan, Indonesia’s crypto ecosystem must have a strong structure that can respond to the rapidly changing needs of the market.

With these regulations, Indonesia’s crypto market will continue to evolve to appeal to a wider audience of investors, while standards in the industry will also be improved.