The Indonesian government has expressed concern over the security of crypto investment in the country. Its officials are making policies that will provide maximum security for digital investment. Finance Minister Sri Mulyani Indrawati has beckoned on the parliament to draft regulatory laws that will secure crypto investments.
An Overview of Cryptocurrency Activities in Indonesian and the Need for Regulation
The task of managing and regulating the crypto industry has been given to the Financial Service Authority (OJK) of Indonesia. Through OJK, adequate measures will be put in place to secure the funds of every crypto investor. Crypto scammers in the country will be apprehended using blockchain technological tools.
The minister revealed that the ministry of trade would strictly supervise all cryptocurrency-related activities in Indonesia. In addition, the Commodity Futures Trading Regulatory Agency (CTRA) will monitor crypto trading. However, a bill that seeks crypto regulation has been subjected to debate-level in the Indonesian parliament.
According to Sri-Mulyani, the numerical strength of Crypto investors in the country has continued to wax stronger. Over 15.1 million Indonesian crypto investors were discovered in June. The current number surpassed the sector’s report of 2020, which unveiled 4 million crypto traders in the country.
Why Indonesians Crypto Investment Needs Maximum Security
Indonesians’ attention was drawn to cryptocurrency in 2020 due to the Covid-19 Pandemic. Numerous adverse events where exchanges liquidate their investor’s assets have been witnessed, and this call for regulation. The latest was the Zipmex exchange, which prompted the minister to approach the parliament.
She informed the parliament that “Indonesia needs a system that will supervise and safeguard investor’s assets.” She revealed that the new bill would equip OJK with regulating digital funds activities with no exception.
In addition, the ministry of trade has initiated new laws binding on cryptocurrency exchanges. The ministry will require two-thirds of any crypto exchange board of directors to reside in Indonesia. Therefore, any crypto exchange that meets the requirement will be allowed to operate under OJK supervision.
Indonesia Deputy Minister told reporters that the parliament would issue licenses to any exchange before they could operate. The ministry will also require exchanges to utilize third-party wallets in storing investors’ funds. Reinvesting of the conserved funds will be prohibited.
The Q3 Report revealed that the Indonesian government had generated over $6.8 million in revenue from taxes on crypto. The country levied an 0.1% tax on crypto transactions on May 1, 2022.