Demi Transparency And Protection Of Members, Indodax Advises Audit Total Crypto Exchange In Indonesia

Photo: Doc. Indodax

JAKARTA - After the bankruptcy of the second largest FTX crypto exchange that occurred a few days ago, it is undeniable that it has affected the crypto ecosystem a little more globally. The recent negative sentiment has certainly attracted the attention of crypto industry players, one of which is the CEO of Indodax, Oscar Darmawan.

Oscar argues 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 percent both from 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 written statement, Tuesday, November 15.

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

"The audit in question is an audit exchange as a whole. The audit conducted by auditors who understand how blockchain runs is not just rupiah recording. We need to make an equalization of crypto and rupiah inventory in the orderbook and customer balance. It's not just proof of recovery which doesn't mean much but also proof of responsibility (namely the total number of member deposits recorded on the exchange)," said Oscar.

"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 added.

With the overall audit, the balance of members of each exchange can be matched with the proof of reserve of the exchange, both from the nominal rupiah and the amount of crypto.

"I also hope that CoFTRA can immediately provide a new rule asking the exchange to show the results of this audit and be carried out regularly every day if necessary. With this open report, it is hoped that all book orders, member balances and inventory will be matched and all of them are in Indonesia. With all inventory in Indonesia, I believe members will be protected. Don't let the order book in this country, the balance in the third party and inventory in Indonesia itself turns out to be only very small. Don't let the inventory not match between those in order book and those reported because it has the potential to become chaos in the future, "explained Oscar.

Oscar also added that at Indodax, both the order book, the balance of members, and the inventory are all in Indonesia, so the safety of members is clearly protected.

"I always appreciate CoFTRA's quick response and always accommodating the needs of the crypto industry. I hope that the advice I convey can be accepted and can provide security, trust, and comfort in crypto investors, especially after what happened some time ago that affected the world crypto market," explained Oscar.

Regarding the current bearish market, he hopes that by 2023 and 2024 crypto will rise again even though gradually. Oscar also hopes that in the future no global crypto exchange will experience similar problems because more or less it will affect the crypto market globally as well. The hope is that this proposed audit policy can make the risk of the national crypto ecosystem very low and the members' assets not misused.