The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has revealed that it wants to create a state-backed cryptocurrency exchange by mid-2023 at the latest. This market is set to break new ground in the country by being the first of its kind to be created here. The exchange will be managed by entities that obtain financial backing from the state to protect clients’ money and limit the likelihood of fraudulent behavior. Last year, Indonesia passed new laws making it mandatory for cryptocurrency exchanges have at least two-thirds of its management team based in the country, store its clients’ funds in bank accounts controlled by a third party, and be prohibited from reinvesting previously acquired cryptocurrency assets. These new laws went into effect on January 1, 2018.

The value of transactions involving crypto assets is anticipated to reach around $57.7 billion in Indonesia in 2021. This figure represents an increase of 1,224% compared to the value of similar transactions in the previous year. Despite this, the country’s cryptocurrency business has taken a hit as a result of the collapse of several major cryptocurrency organizations, including FTX and Zipmex, both of which are based in Singapore. This has caused the industry to suffer a setback. Additionally, the cryptocurrency industry experienced losses of around $4 billion in digital assets in 2022 as a result of scams, fraud, and rug thefts, with five major exploits totaling $2,361,000,000 alone.

Indonesia’s commitment to promoting a safer and more transparent cryptocurrency market is reflected in the country’s ambition to create a state-backed cryptocurrency exchange. As fraud and fraudulent activities continue to plague the cryptocurrency sector, Indonesia’s commitment to do so is reflected in the country’s ambition to create a cryptocurrency exchange. The Indonesian government aims to reduce the number of instances of fraudulent activity, protect customer assets, and increase the use of cryptocurrencies in the country by separating the trading, clearing, and custody processes in a government-supervised manner.