The government has prepared the establishment of a crypto exchange with a set of rules that can ensure security, convenience, confidentiality and fairness for investors.
By
Joice Tauris Santi
·4 minutes read
JAKARTA, KOMPAS —Crypto asset trading must be able to provide benefits for all parties involved and provide additional income in the form of taxes to the state. The government has prepared the establishment of a crypto exchange with a set of rules that can ensure security, convenience, confidentiality and fairness for investors. Crypto asset transactions must also be regulated because their growing role in the digital economy can also support the economy as a whole.
In addition to infrastructure preparation in the form of regulations, public information and education regarding crypto asset trading also requires cooperation among regulators, traders and the crypto asset investor community. The risks in crypto asset transactions are often forgotten because some people focus more on the potential gains. In addition, many people are still trapped in bogus investment offers in the form of crypto asset transactions that promise fixed incomes.
“Trade must benefit all parties. We will apply the basics of trading that will be stipulated in a set of rules. We will cooperate with institutions that have jurisdiction over the security and convenience of these transactions, such as OJK [Financial Service Authority] and Bank Indonesia," Trade Minister Muhammad Lutfi said at a webinar organized by Kompas in cooperation with the Trade Ministry entitled "Managing Crypto Asset Fever" in Jakarta on Thursday.
Trade must benefit all parties. We will apply the basics of trading that will be stipulated in a set of rules.
In the discussion, which was also attended by the chairman of the Commodity Futures Trading Supervisory Agency (Bappebti), Indrasari Wisnu Wardhana, the executive director/ head of the Legal Affair Department of Bank Indonesia, Rosalia Suci, the head of the OJK’s Investment Alert Task Force, Tongam L Tobing, the chief marketing officer of Tokocrypto, Nanda Ivens, CEO of Indodax, Oscar Darmawan, the chairman of the Indonesian Blockchain Association, M Deivito, as well as crypto asset influencer, Wicky Zeroski.
Muhammad Lutfi emphasized that the Trade Ministry would use a sandbox system in strengthening the crypto asset trading ecosystem and in fixing the rules so that they would be in line with the existing situation. In 2020, the number of investors in crypto assets in Indonesia reached about four million people and as of May 2021, the number increased to 6.5 million people. Transactions also increased from Rp 65 trillion in 2020 to Rp 370 trillion as of May 2021. The Trade Ministry expects the crypto asset exchange will begin operational by the end of 2021.
Security aspect
The head of Bappebti, Indrasari Wisnu Wardhana, said that security of the crypto transaction and protection of investors would be the main priority to be addressed in drafting crypto asset trading rules. “Technology is developing very fast. We will evaluate at least every six months to see progress. The rules need to be evaluated every year,” he said.
He added crypto asset traders must meet several ISO certifications as security standards. The separation of investor funds from trading funds would be an important measure to protect investors.
The security tightening would not only protect investors when conducting a transaction, but also to prevent the misuse of crypto asset transactions for criminal matters, such as money laundering, terrorism, and as a way to keep assets from corruption. There are currently 13 crypto asset traders registered with Bappebti.
In the discussion, regulators, traders, and the crypto asset community agreed that education about crypto assets needs to be carried out massively. "The education is important so that many people can benefit from it," said Nanda.
However, Wicky Zeroski said that he found a number of shortcomings in the services provided by crypto asset traders, such as the absence of a stop-loss and take-profit orders that can protect investors.
The protection against investors, according to Oscar Darmawan, should be begun with the establishment of a good trading system. This will involve supporting institutions, namely the exchange, clearing, trading, and depository. “Important infrastructure facilities must exist in Indonesia. So, it can be seen who should be responsible so that there is no risk of system failure because the system is well planned,” he said.
Meanwhile, Rosalia reiterated that crypto assets were among commodities that could be traded, but they could not be used as a means of payment in Indonesia because the legal instrument of payment was the rupiah currency.
This article was translated by Hendarsyah Tarmizi.