Indonesia extends crypto exchanges licensing deadline until November, allowing more time for compliance with new safety and tax regulations.
Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has extended the deadline for crypto exchanges to meet licensing requirements. The new deadline is set for the last week of November. This move follows updates to regulations announced on October 18. The new rules force exchanges to affiliate with local government agencies and implement “Know Your Transactions” guidelines to remain on the right side of the law.
Indonesia began licensing crypto exchanges in 2019. These regulations demanded that exchanges seek permission to continue operating in the country. In 2023, Indonesia introduced a national exchange for cryptocurrencies. Currently, the government classifies crypto assets as commodities, and these exchanges have to be affiliated with this bourse to operate.
Deadline Extension Gives Exchanges More Time to Meet Licensing Requirements
The new rules are designed to lessen investors’ risks and monitor deals for tax purposes. These regulations are intended to improve the safety of digital asset trading in Indonesia to achieve this goal. For example, they minimize illicit actions such as money laundering or fraud.
So far, 30 exchanges have applied for licenses. However, some exchanges, such as Tokocrypto, the Indonesian subsidiary of Binance, have already secured full licenses. These licensed exchanges can now legally operate in Indonesia, provided they meet the above standard.
The new regulation has given exchanges more time to conform to the new rules as the deadline has been moved forward. This way, they can build the required relations with local authorities and guarantee that the latter follow the new transaction monitoring norms.
The government’s attempt to regulate the crypto sector is meant to increase efficiency and transparency in the market. It also assists the government in tracking cryptocurrency for taxation purposes. The increase in the popularity of crypto in Indonesia has made these regulations perceived as a measure of shielding investors and establishing order in the market.
Therefore, the extension gives crypto exchanges more time to meet the licensing conditions. Indonesia is still trying to control the crypto market and ensure that both the exchanges and the investors are safe and legal.
