The exchange will be managed by entities that receive financial support from the state to protect customers’ money and prevent fraud. In 2018, new laws were passed that require cryptocurrency exchanges to have most of their management team in the country, store customer funds in third-party bank accounts, and not reinvest previous cryptocurrency assets.
It is expected that in 2021, the amount of money people spend on buying and selling digital currencies in Indonesia will be around $57.7 billion. This is a huge increase of 1,224% from the previous year. However, the country’s digital currency business has been affected by the failure of important digital currency organizations such as FTX and Zipmex, which were based in Singapore. This has caused problems for the industry. In addition, the digital currency industry has lost about $4 billion worth of digital assets in 2022 due to scams, fraud, and other dishonest practices, including five big cases that alone amounted to $2,361,000,000.
Indonesia wants to make the digital currency market safer and more transparent by creating a government-supported digital currency exchange. There are a lot of scams and dishonest behavior in the digital currency industry, but Indonesia wants to make things better by creating this exchange.
The government hopes to reduce fraud, protect customers’ money, and encourage more people to use digital currencies in the country. They plan to do this by separating the processes of buying, selling, and storing digital currencies in a way that is closely watched by the government.
