Indonesia Becomes A FATF Member, Investor Confidence In Crypto Is Increasing

Crypto (photo: illustration: between)

JAKARTA - Indonesia has officially become the permanent member of the 40th Financial Action Task Force (FATF), an international forum that plays an active role in fighting money laundering and financing terrorism.

The President of the Republic of Indonesia, Joko Widodo, said that membership is important to increase positive perceptions of the Indonesian financial system.

"We hope this will be the first step towards governance of the anti-money laundering regime and better prevention of Indonesia's terrorism financing," said President Jokowi some time ago.

As a member of the FATF, Indonesia is obliged to apply international standards in preventing these crimes. This of course has a positive impact on the crypto asset industry in Indonesia. Crypto assets are often a means of money laundering or financing terrorism.

Tokocrypto CEO Yudhono Rawis said that Indonesia's full membership in FATF is an important step for Indonesia in maintaining security and compliance in the crypto industry. This will encourage the growth of the crypto asset industry in Indonesia to be faster.

Yudho added that Indonesia's presence as a full member of the FATF creates a safer, more transparent, and trustworthy environment for investors and crypto asset business people.

"With stricter regulations related to the prevention of money laundering and terrorism financing, it is believed that public and investors' trust in the crypto asset market in Indonesia will increase," said Yudho.

Yudho explained that this membership would encourage the Commodity Futures Trading Supervisory Agency (CoFTRA) to reaffirm risk mitigation measures and develop PPT APU work programs related to crypto asset trading.

Meanwhile, one of the important steps that have been implemented by CoFTRA is related to the Travel Rule regulation which was first promoted by FATF in 2019.

Yudho said this rule requires crypto asset service providers to track and report transaction information involving their users.

So this aims to ensure transparency and prevention of misuse of crypto assets in money laundering and terrorism financing.

"One of the main goals of CoFTRA is to protect the public from the potential abuse of crypto asset trading as a means of money laundering and terrorism financing. With the support of the FATF, CoFTRA will be able to take preventive measures and take action against illegal activities involving crypto assets," he explained.

Yudho emphasized that Tokocrypto will always comply with the rules set by CoFTRA and FATF in order to maintain the security and integrity of the crypto asset market.

"We understand the importance of compliance with these rules, and we are ready to cooperate with the authorities to prevent potential abuse of crypto assets," he added.

Yudho conveyed that with good cooperation between industry players, CoFTRA, and FATF, it is hoped that it can create a more secure and reliable environment for trading crypto assets, so that the benefits can be felt by the wider community.

"Thus, Indonesia is entering a new era in developing a more quality and integrity crypto asset industry, with FATF membership as its strong foundation," concluded Yudho.