Indonesia Extends Deadline for Crypto Exchange License Compliance
The deadline for crypto exchanges in Indonesia to meet licensing requirements has been extended by the Commodity Futures Trading Regulatory Agency (Bappebti) until the last week of November. This decision comes after updates to current regulations were released on Oct 18.
In order to become Physical Crypto Asset Traders, exchanges are now required to form partnerships with local government bodies and implement Know Your Transactions standards to ensure compliance with the regulations.
The licensing process for exchanges in Indonesia began in 2019 when regulations were introduced, mandating that crypto exchanges in the country must obtain authorization to continue their operations. Additionally, Indonesia launched a national bourse for crypto assets in 2023, considering them commodities and requiring exchanges to register with the platform to continue operating. This initiative aims to enhance the safety of crypto investments for investors and facilitate the tracking of digital asset transactions for tax purposes.
According to CoinDesk, more than 30 crypto exchanges have applied for licenses, with some exchanges already receiving full licenses, such as Binance’s Indonesian subsidiary Tokocrypto.
It is important to note that CoinDesk is a reputable media outlet covering the cryptocurrency industry, with journalists who adhere to strict editorial policies to ensure integrity, independence, and freedom from bias in their publications. CoinDesk is part of the Bullish group, which invests in digital asset businesses and assets. As such, CoinDesk employees, including journalists, may receive compensation in the form of Bullish group equity.
As the crypto industry continues to evolve and regulations are updated, it is crucial for exchanges to stay informed and compliant to operate legally in Indonesia. The extension of the deadline for license compliance provides exchanges with more time to meet the necessary requirements and contribute to a safer and more transparent crypto market in the country.
