By The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) announced in a press release that it has extended the deadline for crypto exchanges to comply with its new licensing requirements until the last week of November 2024.
This extension applies to exchanges already listed as Prospective Crypto Asset Physical Traders.
The move comes under the newly revised Bappebti Regulation Number 9 of 2024, aimed at creating a more robust framework for the crypto industry.
As part of this, exchanges must form partnerships with local government bodies and implement Know Your Transaction (KYT) protocols, while institutions gain new trading opportunities.
How Regulation Number 9 of 2024 impacts crypto exchanges
Bappebti’s new bill, Regulation Number 9 of 2024, aims to modernize the regulatory environment for Indonesia’s crypto market.
Crypto exchanges are required to partner with the Directorate General of Population and Civil Registration of the Ministry of Home Affairs.
Along with this, they must adhere to the Know Your Transaction (KYT) standards. Compliance with these rules is necessary for exchanges to gain a Physical Crypto Asset Traders license.
Exchanges that fail to meet these standards risk having their applications for a license revoked.
With Regulation Number 9 of 2024, Bappebti has expanded the scope of entities eligible to trade digital assets.
Previously, the market focused solely on individual traders, but the updated regulations now include legal entities and business entities as potential participants.
This shift is expected to attract more institutional investors into the Indonesian crypto market, creating new opportunities for growth and market expansion.
The broader inclusion could help Indonesia become a key regional hub for institutional crypto trading.
Deadline extension
The extension allows exchanges like INDODAX additional time to meet the updated regulatory requirements. INDODAX is currently in the process of validation, aiming for approval from Bappebti to secure its Physical Crypto Asset Traders license.
The company is adjusting to the new standards and remains focused on complying with the revised regulations.
INDODAX, like other exchanges, must ensure it meets the guidelines to continue operating within Indonesia’s evolving crypto market.
One of the key components of Bappebti’s revised regulations is the requirement for exchanges to list on the National Crypto Asset Futures Exchange and become members of the Crypto Asset Clearing House. These steps are crucial for maintaining transparency and compliance within the sector.
The new framework aims to build a secure and regulated environment for crypto trading, which can help boost investor confidence in Indonesia’s market.
Bappebti’s updated regulations, particularly Regulation Number 9 of 2024, are designed to create a strong and adaptable ecosystem that can meet the dynamic needs of the crypto market.
The agency plans to align existing rules with the Commodity Futures Trading Law to ensure that Indonesia remains competitive in the fast-paced global crypto industry. The new regulatory structure aims to balance innovation with investor protection, positioning Indonesia as a regional leader in crypto regulation.
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