Crypto Exchange Licensing in Indonesia: Regulations and Requirements

Indonesia has been presenting a promising market for crypto brands, as seen from the massive growth of crypto investors and crypto transaction volume. However, unlike the free-wheeling landscape of some regions, Indonesia has established a well-defined regulatory framework to ensure consumer protection and market stability. For crypto exchanges, to operate legally and build trust with Indonesian users, obtaining a license in Indonesia is crucial. This article provides a guide to securing the necessary licenses and establishing a compliant presence in Indonesia.

The first step is to understand that Indonesian crypto regulation is overseen by The Commodity Futures Trading Supervisory Agency (Bappebti). The latest regulation implemented by Bappebti is Peraturan Bappebti nomor 13 Tahun 2022, emphasizing that physical trading of crypto assets in Indonesia can only be carried out by crypto exchanges who have obtained registration or approval as Crypto Asset Physical Traders from the Head of Bappebti. This regulation aims to protect consumers and prevent unauthorized activities that could lead to financial losses. By knowing the current established regulation, crypto brands can ensure they operate within the legal framework and avoid potential risks or penalties from the Indonesian government.  

The same regulation from Bappebti also outlines several requirements that crypto exchanges must fulfill to obtain approval as Crypto Asset Physical Traders in Indonesia. Some of the requirements include:

1. Have a paid-in capital of at least Rp100,000,000,000 (one hundred billion rupiah), approximately 6 million US Dollars;
2. Maintain equity of at least Rp50,000,000,000 (fifty billion rupiah), approximately 3 million US Dollars;
3. Have a minimum organizational structure of Information Technology Division, Audit Division, Legal Division, Crypto Asset Customer Complaint Division, Client Support Division, Accounting and Finance Division;
4. Have an online trading system and/or facility that is used to facilitate the organization of Physical Crypto Asset Market (Pasar Fisik Aset Kripto) trading that is connected to the Commodity Exchange and the Commodity Clearing Institution;
5. Implement trading rules, such as definitions and terms, registration process, representations and warranties, obligations and responsibilities, data updates,  transaction procedures, transaction fees and withdrawal limits, and so on.

Staying up-to-date on the latest regulations and maintaining close communication with Indonesian government parties is crucial for long-term success in adopting crypto exchange to Indonesia. Furthermore, partnering with local legal and compliance experts can provide invaluable guidance as you navigate the complexities of the market. By remaining informed and adaptable, your brand can ensure sustained compliance and contribute to the responsible development of the Indonesian crypto ecosystem.