Crypto Trading Just Got Serious in Indonesia—Here’s Why

TL;DR: Bappebti’s new regulation positions Indonesia as a leading crypto hub, attracting institutional investors to crypto trading but posing compliance challenges

Indonesian Commodity Futures Trading Regulatory Agency (CoFTRA) has unveiled Regulation No. 9 of 2024, a refinement of Regulation No. 8 of the same year. This updated policy introduces enhanced mechanisms, granting institutions streamlined access to engage in crypto trading through registered exchanges, which must implement robust know-your-transaction (KYT) principles and integrated travel rules.

“This policy aims to propel Indonesia’s crypto market into a new era of growth,” stated Kasan, head of Bappebti. “We anticipate that the entry of institutional investors will not only boost investment but also drive job creation and contribute to overall economic growth.”

Industry players like Reku and Tokocrypto have welcomed the regulation, optimistic about the potential impacts on market dynamics. Robby, Chief Compliance Officer of Reku and Chairman of Aspakrindo-ABI, remarked, “These regulations further establish Indonesia as a mature crypto ecosystem, welcoming a broader spectrum of stakeholders, from individual investors to large institutions. The adoption of such measures signals that crypto assets are becoming as competitive as traditional investment instruments like stocks and bonds.”

Wan Iqbal, Chief Marketing Officer of Tokocrypto, expressed confidence in the potential for increased trading volumes, predicting a two- to threefold rise in transactions over the next few years. 

“Institutional investors are a game changer,” Iqbal noted. “We foresee significant market expansion, job creation, and positive economic ripple effects. This policy aligns with global trends, where institutional interest in digital assets continues to rise.”

Bappebti reported that from January to September 2024, crypto transactions in Indonesia reached IDR 426.69 trillion, marking a 351.97% growth year-over-year. By September, the number of crypto users had surged to 21.27 million, surpassing the traditional capital market investor base. Tokocrypto believes that institutional involvement will further strengthen Indonesia’s crypto ecosystem, enhancing both stability and trust.

Read more: From Bitcoin to PEPE: Indonesian Cults Transforming the Crypto Scene

Global Trends and Indonesia’s Strategic Advantage

The timing of this regulatory framework aligns with an increasing global appetite for crypto investments. A recent River report revealed that U.S. companies collectively hold 683,332 Bitcoin, amounting to 3.3% of the total Bitcoin supply. Institutional players like Microstrategy and Tether have dominated early 2024 Bitcoin purchases, collectively accounting for 85% of acquisitions. This global momentum signals a paradigm shift as institutions incorporate crypto into their portfolios.

Indonesia aims to leverage this trend, strategically positioning itself as a prime destination for crypto investment. The demand for Bitcoin and crypto derivatives continues to grow, and exchanges like Reku and Tokocrypto are eager to meet institutional needs. “Our commitment is to deliver unparalleled service to all users, including institutions, by continuously innovating and refining our platform features,” added Iqbal.

Read morre: Debunking Indonesia’s First National Crypto Exchange: What, How, and Why

Analysis and Outlook

While optimism surrounds Indonesia’s new regulations, their impact will ultimately hinge on effective implementation and the ecosystem’s ability to accommodate institutional interest. Challenges such as market volatility and regulatory compliance hurdles remain, posing risks for both new and established players. Yet, these regulations mark a critical milestone in Indonesia’s journey to becoming a regional crypto hub. By making history as the first country to operate a crypto exchange and approve derivatives, Indonesia has set a benchmark for Southeast Asia, positioning itself to attract global institutional capital. 

However, navigating this complex regulatory landscape can be daunting. That’s where Indonesia Crypto Network (ICN) comes in—providing unmatched local expertise and strategic connections to help institutions gain visibility and engage with key stakeholders. Don’t miss this opportunity. Book a call with ICN today to unlock your potential in Indonesia’s evolving crypto market.

Read more: Inside Indonesia’s Cabinet: 10 Ministers Advocating for Crypto and Blockchain