Last Updated on November 15, 2022 by Bitfinsider
The FTX disaster has disrupted the whole cryptocurrency business and prompted new legislative processes in numerous nations, including Indonesia. According to numerous experts, this may only be the beginning.
After filing for bankruptcy on Friday and announcing the resignation of its founder, users of the second-largest exchange are still adjusting to the news. Numerous crypto aficionados deemed FTX’s ecosystem to be invincible, as it was regarded as one of the crypto industry’s most significant players.
Similar to the rest of the globe, Indonesia’s usage of cryptocurrencies has exploded in recent years. In the preceding fiscal year alone, crypto transactions increased by a staggering 1,224%.
According to The Indonesian Futures Commodity Trading Supervisory Agency or “Bappebti,” investors in the state transacted around 859.4 trillion rupiahs ($57.4 billion) in cryptocurrencies in 2018 compared to 64.9 trillion rupiahs in 2020. The government is considering implementing stringent regulations to preserve its economic sector and protect the crypto assets of its citizens against such a catastrophe.
The Indonesian government is considering naming the Financial Services Authority (OJK) as the sole supervisor of cryptocurrency markets, according to recent reports. In recent years, Indonesia, the largest economy in Southeast Asia, has witnessed a tremendous investment surge in the crypto sector. Currently, the state’s Trade Ministry and the Commodity Futures Trading Regulatory Agency supervise the cryptocurrency market simultaneously.
Sri Mulyani Indrawati, the Indonesian Minister of Finance, stated on Thursday that the planned amendment is in accordance with the banking sector law now being debated in parliament. The necessity of a “solid framework for oversight and investor protection” should not be overlooked when discussing the stratospheric rise of digital currency investors in Indonesia to 15,1 million by June of this year, compared to only 4 million the previous year.
“We need to develop a supervisory and investor protection mechanism that is extremely robust and dependable, especially for high-risk investment instruments,” she said at a parliamentary session, noting that the bitcoin market has recently experienced volatility.
The present government filed the bill to the legislature in September of this year. This Thursday, a meeting was held to obtain the initial response and any further requirements for the new legislation from the legislature. At the conclusion of the meeting, the finance minister stated that the legislation would grant the OJK the authority to supervise and regulate technological innovation and digital assets, including cryptocurrencies, in the financial sector.
According to reports, the Indonesian parliament recommends include its central bank, Bank Indonesia, in the law in order to promote economic growth and price stability. Once both the executive and legislative arms of the legislature agree to all provisions, the bill in question will become law.
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