Proof Of Reserve Transparency: Indonesia's Crypto Industry Is Expected To Be More Open And Transparent

Photo: Didi Kurniawan/VOI

JAKARTA - With more than 6.8 million users, INDODAX currently has a crypto asset reserve of IDR 11.5 trillion, including 4,806.34 Bitcoins worth IDR 4.288 trillion, 36,915.47 Ethereum worth IDR 1.334 trillion, and various other crypto assets worth around IDR 5.907 trillion.

Despite experiencing a loss of around Rp. 300 billion due to cyberattacks, INDODAX CEO Oscar Darmawan emphasized that the financial impact was only about 3 percent of INDODAX's total crypto asset reserves. INDODAX's commitment to transparency and openness is considered one of the key factors that help restore user confidence.

Transparency is an important foundation in building and maintaining public trust. With the publication of the Proof of Reserve, we provide confidence to users that they can monitor their asset security at any time. This is a tangible manifestation of our responsibility to the members," Oscar said, quoted Friday, September 27.

In addition, after the hacking incident, INDODAX managed to restore user confidence with a total transaction volume that continued to increase to more than Rp2.3 trillion during the period 14-25 September 2024, showing that the level of public trust in the INDODAX platform was still high after the incident.

Oscar also added that over the past two years, INDODAX has been trying to invite other crypto exchanges to adopt similar measures.

"We have encouraged the crypto industry in Indonesia to be more open and transparent. Although so far no one has followed suit, we believe that transparency will be an important factor in creating a secure and reliable crypto ecosystem in the future," he explained.

Angga Andinata, a crypto analyst and educator of Crypto & Web 3, also appreciated the steps taken by INDODAX.

The 'proof of Reserve' implemented by INDODAX is not only in the form of reports, but also integrated in real-time, which allows the public to verify backup data directly. This step is an example that other crypto exchanges in Indonesia should follow," he said.

Meanwhile, in the context of future regulations, Angga also highlighted that the Financial Services Authority (OJK) will plan to strictly monitor crypto assets in Indonesia, where crypto asset reserves will be stored by custodian companies.

"I hope that later the custodian companies can also publish their reserves transparently to maintain user confidence," Angga added.

Oscar Darmawan emphasized that transparency is not only following regulations, but also reflects the company's integrity and responsibility to users.

Many other exchanges choose not to provide open access to their reserves. However, we at INDODAX dare to be open because we believe that user trust is the most important. This is our commitment to leading the industry in the right way," Oscar said.

With this transparency step, INDODAX hopes to set new standards in the Indonesian and global crypto industry

"We expect more exchanges to follow in our footsteps to create a more secure, transparent and trusted crypto ecosystem," Oscar concluded.