September 13, 2023
Indonesia’s National Crypto Exchange
Indonesia has launched a national crypto asset bourse to provide regulators with essential transaction records and better protect crypto investors.
The purpose of the exchange and clearing house is to bolster monitoring of the crypto sector during a transitional phase in regulatory oversight, according to the Commodity Futures Trading Regulatory Agency (Bappebti).
While Indonesia prohibits the use of cryptocurrencies as a means of payment, it allows citizens to invest in digital assets. This has resulted in a surge of investments in cryptocurrencies, particularly during the pandemic.
The newly established national crypto asset bourse will list existing licensed crypto companies, including Binance’s Tokocrypto and Indodax, among others, as traders. PT Bursa Komoditi Nusantara will operate the bourse, while PT Kliring Berjangka Indonesia will handle transaction clearing. Additionally, PT Tennet Depository Indonesia has been appointed as the crypto asset storage manager.
This initiative comes in the wake of a new law signed earlier in the year, which called for the transfer of regulation, supervision, and oversight of cryptocurrencies from Bappebti to the Financial Services Authorities. The process is set to span a two-year transition period.
GLOBAL IMPACT
2023 has definitely been a year of opportunity and identity crisis among global crypto capitals. While the US has been clamping down, Dubai, HK and Singapore continue to be seeming safe havens as each nation’s regulator(s) grapple(s) with the question: “How do you solve a problem like crypto regulation?” like a nun in the Sound of Music.
A nationalised crypto exchange, in a sense, is giving crypto the status of a national stock exchange. But does this mean that a crypto company heading towards an ICO has to go through a similar process as an IPO?
I am not an IPO specialist myself, but I do know enough to be able to say, it is not an easy or quick process.
But this begs the question, should ICOs be easy and quick processes?
Ultimately, when a crypto project doesn’t live up to its promises, it’s a blow to the industry, but it’s a blow to its investors’ wallets first and foremost. An IPO-style ICO process can help mitigate this risk by ensuring only serious players make it all the way.
Would this inevitably kill the Web3 start-up industry? I don’t think so.
For starters, unregulated token launch options continue to exist in offshore jurisdictions (which come with their own hassles).
Moreover, an IPO listing is the ultimate goal of traditional tech companies, why shouldn’t an ICO listing be the same for new-build Web3 companies?
What’s clear to me is that the ICO boom is dead (it has been over for some time) and it is unlikely to be resurrected – not in the same way anyway.
We’ve got a brave new world full of increasingly complex regulations. For now, – this – may be how you solve a problem like crypto regulation.