PINTU CEO: CEX And DEX Play An Important Role In The Crypto Economy

Photo: Doc. DOOR

JAKARTA - The largest annual crypto festival in Indonesia Coinfest Asia is again held. PT Pintu Kemana Saja with the platform PINTU, the buying and selling platform and investing in crypto assets again support this activity by sponsoring and participating in a panelist session with the theme Clash of the Plants: Decentralized vs Centralized Trading. Founder & CEO of GINT Jeth Soetoyo together with three other panelists discussed issues related to decentralized exchange (DEX) and centralized exchange (CEX) in the crypto world that have been going on in recent years.

Jeth Soetoyo, Founder & CEO of PINTU revealed, talking about the use of DEX and CEX, is ultimately a spectrum. As we need banks and physical wallets to store money, some people prefer to store crypto in DEX, while others prefer in CEX, depending on individual needs.

"Although I agree that the crypto industry is moving towards Web3 and decentralized finance (DeF)i, managing keys and wallets independently is not an easy concept for many people. Therefore, I believe that DEX and CEX can run side by side," said Jeth, in his statement, Tuesday, August 29. Looking further at the comparison from the volume side of trading between DEX and CEX, referring to a report from Coinmarketcap, in the first semester of 2023 the total trading volume of CEX reached 1.67 trillion US dollars outperforming DEX which contributed 189 billion US dollars. The amount of trade volume of DEX & CEX cannot be separated from three factors. First, the ease of investing in global assets such as crypto that is of interest to many people and the birth of DEX & CEX which provides convenience in investment and storing assets. Second, the risk profile of users in Asia, especially Indonesia, which likes high risk high returns financial products. The third factor is the regulatory role of regulatory formulation that is friendly to the crypto ecosystem in particular in Indonesia. In the past year, crypto regulation in Southeast Asia is more dynamical compared to western countries. We highly appreciate the government's active role in supporting the advancement of the crypto industry, "said Jeth.

Some time ago, the government, namely the Ministry of Trade, officially launched a crypto exchange through the decision of the Head of CoFTRA Number 01/BAPPEBTI/SP-BBAK/07/2023. Meanwhile, PT Exchange Commodity Nusantara or Commodity Future Exchange (CFX) was selected as the manager of the Indonesian crypto asset exchange.

We fully support the establishment of the Nusantara Crypto Exchange (BKN) which is expected to further strengthen the competitiveness and penetration of crypto assets in Indonesia. According to my observations, from the regulatory side, Indonesia is currently transitioning from the Commodity Futures Trading Supervisory Agency (BAPPEBTI) to the Financial Services Authority (OJK). The framework used is to separate the role of an exchange, clearing, asset storage, and brokerage so that there are accountability from various participants for different business parts. Of course, with more clarity, the rules regarding the crypto industry are expected to encourage increased penetration of crypto investments in Indonesia as well as provide full security for investors and also players in industry," concluded Jeth.