Indonesia's Crypto Transaction Drops, What's The Fate Of The Crypto Exchange Business In Indonesia?

Illustration of crypto assets (photo: dock. Antara)

JAKARTA - According to the Financial Services Authority (OJK), the trading volume of crypto assets in Indonesia fell by 224 percent on an annual basis (YoY) to reach IDR 94.4 trillion in September 2023.

OJK also noted that one of the causes of a significant decline in the value of crypto transactions is the high imposition of taxes. However, the OJK stated that taxation on crypto transactions is considered'very positive'.

With the transaction value continuing to decline, what is the potential of the crypto asset trading business or crypto exchange in Indonesia?

According to Tokocrypto CEO, Yudhono Rawis, although currently the crypto investment market in Indonesia has reached more than 17 million investors, this figure still represents about 5-6 percent of the total population of Indonesia. This means that there is still a very large space for growth in this sector.

"Simplely speaking, everything depends on market potential. Indonesia has a population of the majority consisting of the younger generation, and this makes the potential of the crypto market big going forward," Yudho said in a statement on Thursday, November 15.

Yudhono emphasized that the growth of crypto business players in Indonesia and 32 existing Candidates for Physical Crypto Asset Traders (CPFAK), showed that their markets and ecosystems were increasingly mature and developed.

In addition, Yudho sees a business advantage from the transfer of crypto asset trading arrangements from CoFTRA to OJK. With stronger and clearer regulations from the OJK, the potential to increase investor confidence in trading crypto assets in Indonesia is getting bigger.

"Hopefully, in five years, with the transfer to OJK, there will be collaboration between TradFi and crypto. Later, traditional financial institutions in Indonesia that are interested in crypto can buy them from licensed traders, thereby improving their business," he concluded.

Yudho emphasized that currently Tokocrypto, together with the Indonesian Crypto Asset Traders Association (ASPAKRINDO) and the Indonesian Blockchain Association (ABI), continue to actively dialogue with all parties involved, including Coppepti and OJK in an effort to create fair regulations and support innovation in the crypto asset industry.