Authorities declare that all administrative affairs are ready. Of 18 traders of crypto assets, one has been frozen for not fulfilling regulations.
By
KOMPAS EDITOR
·3 minutes read
MARTIN BUREAU
This photograph taken on April 26, 2021 in Paris shows a physical imitation of the Bitcoin crypto currency displayed on foreign bank notes.
The transaction of crypto-related assets has skyrocketed. Although good news, caution is required to safeguard those lacking in financial acumen.
The crypto asset trade is steadily increasing in Indonesia. According to data provided by the Commodity Futures Trade Regulatory Agency (Bappebti), the transaction of crypto assets amounted to a total of Rp 1.86 quadrillion (US$129 million) as of the end of 2021, an increase of 1,222 percent from Rp 64.9 trillion in 2020.
During a hearing with the House of Representatives Commission VI on Thursday (24/3/2022), the acting head of Bappebti, Indrasari Wisnu Wardhana, clarified that the escalating transactions peaked in April and May 2021. Despite their popularity, the supporting infrastructure for crypto assets is insufficient. Despite plans, the crypto asset market is not yet complete. (Kompas.id, 24/3/2022).
Institutions that support crypto transactions, including exchanges, futures clearing, custodians and physical traders, have also been prepared.
Authorities declare that all administrative affairs are ready. Of 18 traders of crypto assets, one has been frozen for not fulfilling regulations. Institutions that support crypto transactions, including exchanges, futures clearing, custodians and physical traders, have also been prepared.
However, we must encourage authorities to pay special attention to protecting investors. The House has also issued the same warning. Various efforts have already been made by market authorities, but it looks as if the government needs to step in to protect investors from possible manipulation or fraud. One option is to regulate the advertisement of crypto products and other digital assets.
Advertisements of crypto assets are currently allowed to make grand promises, which can lead to misunderstandings. Such advertisements lead people to believe that they can make easy money without hard work, and they entice people to make investments - without warning of the large risk. Seductive promises easily tempt the masses.
AP PHOTO/AHN YOUNG-JOON
A man watches the prices of bitcoin at Bithumb cryptocurrency exchange in Seoul, South Korea, Wednesday, June 20, 2018. Bithumb, South Korea's second-largest exchange, said Wednesday that $31 million worth of virtual currencies have been stolen by hackers, a latest in the series of recent hacks that raised security concerns. (AP Photo/Ahn Young-joon)
In a number of countries such as the United Kingdom, Australia, Singapore and India, crypto asset advertisements are strictly regulated. Advertisements on social media are also carefully analyzed, with the aim of protecting the investor. The Singaporean authorities even demand that crypto asset advertisements not be posted in public areas, including mass media. Advertisers are limited to their own website, their own social media and applications.
Strict measures are beginning to be taken in several countries. Advertisements give the impression that crypto asset investment is easy, simple, carries no risk and requires no basic knowledge about investing. However, in effect, Indonesia has not yet regulated the advertising of these increasingly rampant digital assets.
We do not want more people to fall victim, such as in the cases in which gambling with robot traders was disguised as investment. The government must work hard to find ways to protect investors amid a flurry of new offers.
(This article was translated by Hendarsyah Tarmizi)
