– The Indonesian trade ministry plans to issue a new rule governing crypto asset exchanges, requiring two-thirds of the board of directors and commissioners to be Indonesian citizens and reside in the country, a deputy minister said Tuesday.
– The measure comes following financial issues faced by Southeast Asia-focused cryptocurrency exchange Zipmex, which temporarily prevented users from withdrawing funds.
– “We don’t want to give permits (to exchanges) carelessly, so only for those that meet the requirements and are credible,” deputy trade minister Jerry Sambuaga told reporters after a parliamentary hearing.
– The ministry’s Commodity Futures Trading Regulatory Agency (Bappebti) will issue the new rule soon, he said, without giving a timeframe.
– It will also require an exchange to use a third-party to store client funds and to prohibit exchanges re-investing stored crypto assets, according to a document issued by the ministry.
– Bappebti acting head Didid Noordiatmoko told the parliamentary hearing that ensuring two-thirds of the board were Indonesians based in the country “could prevent the top management running away when a problem hits the exchange.”
– Asked about a plan to launch an Indonesian crypto asset bourse, which has been delayed from last year, Sambuaga said the plan could hopefully be completed this year.
– Cryptocurrency has gained popularity in Southeast Asia’s biggest economy with a total transaction volume of crypto assets up more than 1,000% in 2021 at 859.4 trillion rupiah ($57.37 billion), according to Bappebti’s data.