Members Of The House Of Representatives Suggest That The Government Make Crypto Laws To Prevent Money Laundering And Terrorism Financing

Government plans to enact crypto law to protect consumers (Blockchain News)

JAKARTA – The increase in cryptocurrency trading in the country has prompted the government to form its own crypto exchange. This is intended to provide legal certainty to investors and crypto trading businesses in Indonesia.

Currently, all crypto businesses are under the auspices of the Commodity Futures Trading Regulatory Agency (CoFTRA). Head of CoFTRA, Indrasari Wisnu Wardhana, said that currently crypto transactions in Indonesia are experiencing a rapid increase.

He said that in 2020, crypto trading transactions had reached Rp. 64.97 trillion. Meanwhile, in 2021, in the January to May period, crypto asset transactions reached IDR 370.4 trillion.

"The purpose of regulating crypto assets by CoFTRA is to provide legal certainty and provide business protection for crypto asset traders and investors," said Indrasari in a meeting with Commission VI DPR on Tuesday, June 29.

He also explained that the existence of crypto asset trading regulations is expected to prevent criminal acts such as money laundering and the prevention of terrorism financing.

This is what prompted the government to immediately form a crypto exchange. CoFTRA said that currently the government is still in the process of establishing a crypto exchange. By the end of 2021, the crypto exchange that was being formed was operational.

In addition, fund management will be carried out by implementing a clearing house to guarantee customer money. This is similar to what is applied on the stock exchange to provide protection to customers if a crypto trading company fails to pay.

The clearing house will reportedly keep as much as 70 percent of traders' funds. Evita Nursanty, one of the members of the Indonesian House of Representatives from the PDIP Faction, responded to the effort to establish crypto trading regulations.

Evita encouraged the formation of the regulation to be upgraded to become a law. He argues that the government should be able to see on a larger scale. Evita also believes that crypto asset trading will grow even more.

"We have to look at something bigger, it was conveyed in May 2021 that crypto assets up to Rp. Are we not thinking of a higher rule, namely the Law? he explained.

Evita also added that currently a special law is needed regarding the regulation of these crypto assets. The potential for national income from trading crypto assets is huge. Therefore, the establishment of a law will further strengthen the prevention of threats to national security.

"So (crypto assets) must have their own self-regulatory authorization so that it is clear what the transaction settlement is like, consumer protection rules," said the member of the Indonesian House of Representatives.