Indonesia has launched the world’s first state-backed cryptocurrency exchange, supervised by the Commodities Futures Trading Supervisory Agency.
Key Takeaways
- Indonesia has launched the world’s first state-backed cryptocurrency bourse, aiming to strengthen the regulatory environment and develop a safe and fair crypto trading ecosystem.
- The country’s fintech industry, dominated by P2P lending and e-payment platforms, offers opportunities for foreign investors to serve the underbanked population and fulfill the industry’s potential.
- With a high smartphone penetration rate and a large population of unbanked individuals, Indonesia presents a promising market for foreign e-wallet companies that prioritize customer-centric experiences and offer a variety of local payment methods.
The bourse will list licensed crypto companies and aims to strengthen the regulatory environment for the country’s booming cryptocurrency sector. While the use of cryptocurrencies as a payment medium is currently prohibited, investments in cryptocurrency are allowed. Indonesia saw a significant increase in crypto trading in 2021, reaching $56 billion.
The new exchange requires businesses to obtain a crypto exchange provider (CEP) license and meet certain criteria. Indonesia’s fintech industry is competitive, with P2P lending and e-payment platforms dominating. Foreign fintech firms can fill the financing gap for underbanked adults. The country has a high smartphone penetration rate and a growing middle class, making it a potential battleground for digital payment apps.
Indonesia Launches World’s First State-Backed Cryptocurrency Bourse (aseanbriefing.com)
About the author
ASEAN Briefing features business news, regulatory updates and extensive data on ASEAN free trade, double tax agreements and foreign direct investment laws in the region. Covering all ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)
