Many Issues with Withdrawal of Funds from Local Exchanges, Tokocrypto Assures That It is Not Like FTX

JAKARTA - The issue of withdrawing funds from local crypto exchanges has triggered concerns among Indonesian investors about the potential for a repeat of the collapse of the US-based crypto exchange, FTX, which was caused by the misuse of customer funds.

In response to this, Tokocrypto CEO, Calvin Kizana, emphasized that the current condition of the crypto asset industry in Indonesia is very different and safer, so that the FTX case can not be repeated in the country.

He emphasized that local crypto exchanges no longer hold or manage customer funds directly, since the existence of Exchanges, Clearinghouses, and Custodians.

"Customer funds are no longer held by exchanges such as Tokocrypto. We only serve as a place to buy and sell crypto assets and only trade," Calvin explained in his statement some time ago.

According to him, the assumption that cases like FTX can occur in Indonesia shows a lack of understanding of the applicable regulations.

He explained that FTX did not have a license and was not under the supervision of the authorities, while clearing and custodian institutions were under the strict supervision of the OJK and had been running for more than a year.

In addition, there is a daily asset reconciliation obligation to ensure that the total assets of the customer are always intact. If there is a shortage, the exchange is required to add assets in accordance with applicable regulations.

"The new rules also require strict separation of customer assets, as well as regular checks and reporting. This scheme is designed to strengthen consumer protection and minimize the risk of misuse of funds," he said.

Thus, he assessed, the separation of funds through Clearing, and Custodian actually strengthened the security of customer assets, because the exchange does not have direct access to user funds or crypto assets.

As an exchange, Tokocrypto, indeed often does not pay attention to the problems faced by its customers. When customers lose funds, they easily declare it is the customer's fault because they have been exposed to phishing or other problems. This was experienced by VOI, and there was no solution at all.