Indonesian Regulator Extends Deadline for Crypto Exchanges to Meet Licensing Requirements

The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has announced an extension of the deadline for crypto exchanges to meet the requirements for a Physical Crypto Asset Traders license. This move comes as part of a revised government bill, Bappebti Regulation Number 9 of 2024.

Crypto exchanges now have until the last week of November 2024 to fulfill the registration requirements. The extension only applies to exchanges that are already listed under Prospective Crypto Asset Physical Traders. The new bill mandates that exchanges sign a partnership deal with a local government body, implement Know Your Transaction standards, and provide trading opportunities for institutional entities.

Oscar Darmawan, CEO of major Indonesian crypto exchange INDODAX, expressed gratitude for the extension, stating that it will help strengthen the industry by ensuring compliance with government standards. INDODAX is currently undergoing the validation process and awaiting approval from Bappebti for the license.

Aldison, Head of the Bureau of Legislation and Enforcement at Bappebti, highlighted that Regulation Number 9 2024 will serve as a roadmap for regulating the crypto ecosystem in Indonesia. The updated regulations now allow legal and business entities to become digital asset traders, expanding opportunities in the market.

In order to obtain the license, crypto exchanges must also sign a partnership agreement with the Indonesian Directorate General of Population and Civil Registration and become members of the National Crypto Asset Futures Exchange and Crypto Asset Clearing House. Failure to comply with these requirements may result in the revocation of the license application.

Bappebti aims to create a modern, adaptable, and transparent crypto ecosystem in Indonesia, according to Ir. Kasan, Head of Bappebti. The agency will continue to adjust regulations in line with the Commodity Futures Trading Law to meet the dynamic needs of the market.