Indonesia Extends Deadline for Crypto Exchange License Requirements Following Regulatory Updates

As a seasoned crypto investor with a keen eye for regulatory developments, I find the recent updates and extensions by Indonesia’s Bappebti to be both challenging and exciting. Having navigated through numerous regulatory changes across different jurisdictions, I can attest that this is yet another step towards maturing the crypto industry.

The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has pushed back the date for cryptocurrency exchanges to fulfill their licensing conditions and qualify as Physical Cryptocurrency Traders to late November.

Based on the updates to the regulations issued on October 18th, it’s necessary for exchanges to establish collaborations with local governing entities and implement Know Your Transaction protocols to ensure ongoing compliance.

2019 marked the start of licensing for cryptocurrency exchanges in Indonesia, as new rules were implemented that mandated these platforms to obtain approval to keep functioning within the country.

2023 saw Indonesia introduce its own cryptocurrency exchange, categorizing digital assets as commodities. This mandates all crypto trading platforms to register on this national bourse in order to keep functioning. The intention is twofold: to ensure a secure investment environment for crypto investors and to facilitate the monitoring of digital asset transactions for tax purposes.

CoinDesk recently reported that 30 crypto exchanges have applied for licenses and several exchanges have already obtained full licenses, including Binance’s Indonesian subsidiary Tokocrypto.