The Government Guarantees The Safety Of Consumers And Crypto Asset Investors

Deputy Minister (Wamen) of Trade Jerry Sambuaga. (Photo: ANTARA)

JAKARTA - Deputy Minister of Trade Jerry Sambuaga said the Indonesian government protects consumers in investing and minimizes risks for crypto asset investors, by conducting off-site and on-site supervision.

"Off-site monitoring is carried out on routine reports submitted by crypto asset traders via electronic mail (e-mail) or an electronic reporting system connected to CoFTRA," Jerry said as quoted by ANTARA, Tuesday, July 19.

Meanwhile, on-site supervision is direct monitoring on a regular basis or at any time based on risk mapping calculations.

This was explained by the Vice Minister of Trade at the Block #1 Goes to Campus seminar held at the FISIP hall of Diponegoro University, Semarang, Central Java.

The seminar carried the theme "Opportunities and Challenges of the Blockchain Industry in Indonesia".

The Ministry of Trade through the Commodity Futures Trading Supervisory Agency (CoFTRA) has issued CoFTRA Regulation Number 8 of 2021 concerning Guidelines for the Implementation of Physical Trading of Crypto Assets on the Futures Exchange.

This is to accommodate the physical trading of crypto assets in Indonesia.

“Crypto assets in Indonesia are categorized as commodities that can be traded on futures exchanges. Crypto is called an asset (cryptoassets), not a means of payment (cryptocurrency). Crypto assets are not regulated by the Ministry of Finance, Bank Indonesia, or the Financial Services Authority, but the Ministry of Trade," explained the Vice Minister of Trade.

The Vice Minister of Trade added that the types of crypto assets that can be traded in Indonesia are based on CoFTRA Regulation No. 7/2020 concerning the Determination of the List of Crypto Assets that can be Traded in the Crypto Asset Physical Market, which is as many as 229 assets.

“The arrangement is expected to provide benefits, such as increasing domestic investment or preventing capital outflows; provide protection to consumers and business certainty; prevent money laundering and terrorism financing; as well as opening vacancies in the field of information technology," said Jerry.

"In addition, it is also expected to provide benefits to the state in the form of tax revenue," said the Vice Minister of Trade

Currently, the Indonesian government is in the process of establishing a crypto asset exchange, clearing house, and custodian to support the Indonesian crypto asset ecosystem.

Furthermore, the government will continue to monitor the development of this extraordinary transaction and customer value so that crypto asset trading in Indonesia remains on the right corridor.

The Ministry of Trade noted that the growth in transaction value and the number of crypto asset customers in Indonesia was extraordinary.

In 2021, the total value of crypto asset transactions will reach Rp. 859.4 trillion, an increase of 1,224 percent compared to 2020 which was recorded at Rp. 64.9 trillion.

The registered buyers recorded 14.6 million buyers.

The demographics of crypto asset investors also show quite interesting information. Men dominate 79 percent and women 21 percent.

The age group was dominated by the 18-24 year old 32 percent, followed by the 23-30 year old group with 30 percent and the 31-35 year old group with 16 percent.

The investors are dominated by residents in Java with 69 percent, followed by Sumatra with 17 percent and Kalimantan with 6 percent.

"The work of crypto asset customers is dominated by 28 percent of private employees, followed by 23 percent of entrepreneurs and 18 percent of students," said Jerry.

It is difficult to compare stock trading with crypto asset trading because stocks are more established than cryptos that have only started in the last three years. The transaction value is quite far apart.

However, on the other hand, the number of crypto asset customers of 14.6 million in June 2022 was more than the 9.11 million share customers.

This shows that crypto asset trading will be able to compete with stock trading.