Reflecting On The FTX Case, Indodax Advises Audit Total Crypto Exchange In Indonesia

Indodax recommends an audit of the total crypto exchange in Indonesia (photo: Indodax)

JAKARTA - The second-largest FTX crypto exchange bankruptcy that occurred a few days ago, cannot be denied to have more or less affected the crypto ecosystem globally.

Indodax CEO Oscar Darmawan also believes that the issue of liquidity experienced by FTX needs to be a special concern for industry players to be more transparent in order to be trusted by the crypto community because the security of investor assets and transparency is very important.

"Indodax has been around for almost nine years and we always try to maintain the trust of our members. Our liquidity is more than 100% of both crypto and Rupiah. As an industry player, I also hope that no exchanges in Indonesia will fall due to the misuse of customers' assets," Oscar explained in a statement received on Tuesday, November 15.

Reflecting on the issue of FTX, as an industry player, Oscar suggested a total audit of the Indonesian crypto exchange that was already registered with CoFTRA for transparency and protection to members.

"The audit in question is an audit exchange as a whole. The audit conducted by the auditor who understands how blockchain runs is not just rupiah recording," he said.

Oscar said that it is necessary to name crypto and rupiah inventory on customer orders and balances. Not only proof of recovery which does not mean much but also proof of responsibility (namely the total number of member deposits recorded on the exchange).

"As an industry player, I advise all exchanges in Indonesia to do the same, and suggest the regulator, in this case, CoFTRA, to require all exchanges to conduct similar audits," he concluded.

With the overall audit, Oscar argues that the balance of members of each exchange can be matched to the proof of the exchange, both from the nominal rupiah and the amount of cryptocurrency.

"With this open report, it is hoped that all orders, balances of members and inventory will be match and everything is in Indonesia. With all inventory in Indonesia, I am sure that members will be protected," said Oscar.

Oscar admits that he always appreciates CoFTRA's quick response and always accommodating the needs of the crypto industry, and hopes that his advice can be accepted and can provide security, trust, and convenience in crypto investors, especially after what happened some time ago that affected the world's crypto market.

Regarding the current bearish crypto market, the Indodax CEO hopes that by 2023 and 2024 cryptocurrencies will rise again even though gradually, and in the future there will be no global crypto exchanges experiencing similar problems because more or less it will affect the crypto market globally as well.