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

Extended Deadline for Compliance

In an Oct. 20 press release, the Indonesian Commodity Futures Trading Regulatory Agency—known locally as Bappebti—announced that crypto exchanges now have until the last week of Nov. 2024 to fulfill the registration requirements. This extension applies to crypto exchanges already listed under Prospective Crypto Asset Physical Traders.

New Regulatory Framework

The extension is part of the newly revised government bill, Bappebti Regulation Number 9 of 2024. The new bill mandates that crypto exchanges sign a partnership deal with a local government body and implement Know Your Transaction standards. Additionally, it grants trading opportunities for institutional entities.

Key Requirements for Compliance

  • Partnership agreement with a local government body
  • Implementation of Know Your Transaction standards
  • Listing on the National Crypto Asset Futures Exchange
  • Membership in the Crypto Asset Clearing House

Failure to meet these requirements could result in the revocation of the license application.

Industry Reactions

Oscar Darmawan, CEO of major Indonesian crypto exchange INDODAX, expressed his gratitude to Bappebti for the extended deadline.

This will also help strengthen the crypto industry as a whole by ensuring that every crypto exchange complies with the standards that have been set.

He stated that INDODAX is currently undergoing the validation process and awaits approval from Bappebti to obtain the license.

New Opportunities for Institutional Investors

Aldison, Head of the Bureau of Legislation and Enforcement at Bappebti, highlighted that Regulation Number 9 of 2024 will serve as a roadmap for regulating the crypto ecosystem in Indonesia. He emphasized that the bill now accommodates institutional entities looking to trade in digital assets, a significant shift from the previous focus on individual entities.

Licensed crypto exchanges are still required to sign a partnership agreement with the Indonesian Directorate General of Population and Civil Registration of the Ministry of Home Affairs, as per the new regulations.

Building a Modern and Transparent Ecosystem

In an Oct. 18 press release, Bappebti reiterated its aim to build a modern, adaptable, and transparent crypto ecosystem.

Bappebti will adjust existing regulations in accordance with the Commodity Futures Trading Law. The crypto industry is very fast and dynamic, so it requires an ecosystem that is strong and able to meet market needs.

said Ir. Kasan, Head of Bappebti.

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