The Indonesian government plans to launch cryptocurrency trading by the end of the year, a senior government official said. He emphasized: we will ensure that all necessary, practical and necessary actions are taken. The Indonesian government plans to launch a cryptocurrency business before the end of the year, DealStreetAsia reported on Wednesday, citing Indonesian Deputy Trade Minister Jerry Sambuka. Speaking at the 2022 WIR Group NXC International Summit in Bali, the trade minister outlined the digital currency exchange initiative as part of the government’s efforts to support consumers amid growing interest in cryptocurrencies. The launch, which was originally planned for 2021, was delayed due to the complexity of the process, the newspaper reported. “We will ensure compliance with all necessary requirements, procedures and actions,” Minister Sambuka said. It shows that we care. We don’t want to rush because that could mean missing something.
Bong Xiu Tsai, CEO of TocoCrypto, believes that crypto trading will help increase the number of participants in the crypto industry and increase the interest of institutional investors. Tokocrypto is one of 25 cryptocurrency exchanges licensed by the Indonesian Commodity Regulatory Agency (Bappebti). Bong commented: Indonesia allows trading of cryptocurrencies as commodities, but does not accept cryptocurrency as a means of payment. In April, Indonesia’s tax authority set income tax (PPh) on capital gains from crypto investments and value added tax (VAT) on cryptocurrency purchases at 0.1 percent.
In January, Indonesia’s Financial Services Authority (OJK) warned that financial institutions are not allowed to offer and sell crypto assets. However, last September, the country’s trade minister, Mohammad Lotfi, said that the Indonesian government will not ban digital currencies like China did. However, Indonesia’s Supreme Islamic Institute, the country’s Sharia enforcement body, has declared digital currencies haram, which are prohibited for Muslims under Islamic law. Crypto transactions in Indonesia grew 1,224 percent to 859.4 trillion rupiah ($57.5 billion) in 2020 from 64.9 trillion in 2020, according to Poppet. In the first six months of this year, 15.1 million cryptocurrency users in Indonesia traded 212 trillion rupiah in cryptocurrencies.