Indonesian regulators extend license application deadline for crypto exchanges

The Indonesian Commodity Futures Trading Regulatory Authority has extended the deadline for crypto exchanges to meet the requirements to obtain a Physical Crypto Asset Trader license as part of the revised government bill.

In a press release dated October 20, the Indonesian Commodity Futures Trading Regulatory Authority, known locally as Bappebti, announced the deadline for crypto exchanges to meet the requirements for the Physical Crypto Asset Trader license.

Crypto exchanges have until the last week of November 2024 to meet registration requirements. The regulator clarified that the extension only applies to crypto exchanges that are already listed under Potential Physical Investors of Crypto Assets.

The extension is part of the newly revised government bill, Bappebti Regulation No. 9 of 2024.

The new bill requires crypto exchanges to sign a partnership agreement with a local government body and implement Know Your Transaction standards, and also provides trading opportunities for institutional entities.

Oscar Darmawan, CEO of INDODAX, Indonesia’s leading crypto exchange, expressed his gratitude to Bappebti for giving crypto exchanges more time to comply with regulations set by the government.

“This will also help strengthen the crypto industry as a whole by ensuring that every crypto exchange complies with the set standards,” Oscar told local media outlets on October 20.

He explained that INDODAX is currently going through the verification process and is awaiting approval from Bappebti to obtain the license. Darmawan also assured that the listed company will comply with the latest regulations.

Aldison, Head of Bappebti Legislation and Enforcement Bureau, stated that Regulation No. 9 of 2024 will serve as a roadmap to regulate the crypto ecosystem in Indonesia. Among the changes, Aldison emphasized how it adapts to institutions looking to trade digital assets. Previously, only individual organizations were mentioned in the bill.

“Legal entities and commercial entities can also be digital asset traders,” Aldison added.

He explained that licensed crypto exchanges are still required to sign a partnership agreement with the Indonesian General Directorate of Population and Civil Registration of the Ministry of Internal Affairs, according to the new regulations.

Additionally, crypto exchanges are required to be listed on the National Crypto-Asset Futures Exchange and be members of the Crypto-Asset Clearing House. Otherwise, they face the risk of having their license applications cancelled.

In its October 18 press release about the new regulations, Bappebti aims to create a modern, adaptable and transparent crypto ecosystem.

“Bappebti will adjust existing regulations in accordance with the Commodity Futures Trading Act. “The crypto industry is very fast and dynamic, so it needs a strong ecosystem that can meet market needs,” said Ir. Kasan is the President of Bappebti.