Indonesia has been working on the launch of its own cryptocurrency exchange that it has been working for a while.
The country had announced that they were working on the development of their own crypto exchange. It would be backed by the country and the aim is to launch it by the mid of 2023.
Indonesia to Launch State-Backed Exchange
Indonesia is among the countries that are eager to expand its reach into the cryptocurrency industry. They want to interact with the crypto-blockchain technology on another level.
For this very purpose, they want to open up their own cryptocurrency exchange that will be backed by the government.
This way, Indonesia will have a far better idea of what is to come in the crypto industry and how it needs to deal with it.
The cryptocurrency exchanges from all levels operating within Indonesia will be able to trade under the state-backed exchange.
This would provide them with a reliable and secure trading platform that the investors will be able to trust. The exchanges operating under the state-backed exchange will be licensed and certified to operate within Indonesia.
They will be following all the rules and regulations laid out for the crypto-blockchain industry in the country. Therefore, it would be much safer and assuring for the investors to trade in such an environment and conditions.
The regulatory authority overseeing all the progress and developments pertaining to digital assets in the country is Bappebti. It is the regulatory authority that is originally tasked with commodity futures trading.
However, the regulator is operating for the betterment of the crypto-blockchain industry in the country.
Details Shared by Bappebti’s Head
The head of the regulatory authority, Didid Noordiatmoko, provide information about the new exchange. He confirmed that their aim is to ensure the launch of the exchange by the mid of 2023.
On top of that, they will have a private company run the entire operation of the new exchange. However, the exchange will be backed by the government of Indonesia and will have full support from them.
Why the Need?
Noordiatmoko talked about the real reason why they have decided to launch an exchange backed by the government.
He revealed that despite being one of the most prominent trading industries, cryptocurrencies are still in their early stage. The industry is yet to mature up but that is going to take a while.
The industry is nascent and exists as a hunting ground for fraudsters and scammers. Cybercriminals and exploiters were able to steal almost $4 billion from the crypto industry in 2022 alone.
This gives them more of a reason to expedite their efforts and come up with an exchange that is controlled by the government.
Having an exchange of their own would allow them to keep a very close eye on every activity taking place in the country that is pertaining to crypto.
They will be able to catch or identify the fraudsters/scammers or the scamming projects before they even make it to the Indonesian market.
They will be able to put a stop to so many negative activities, making their soil safe for crypto expansion. If they are able to achieve half of what they intend to do, their country will become a hub for the cryptocurrency industry.
Noordiatmoko revealed that they will be able to deal with another major risk that the crypto industry can pose, the crash of crypto firms.
He referred to the major crashes that took place in the crypto industry in the year 2022 mentioning FTX, TerraForm Labs, and many more collaterals.
As per him, these firms were operating in a fishy manner and once their truth was revealed, they ended up crashing or filing for bankruptcy.
This led to major contagions that are still impacting the cryptocurrency industry negatively. Having a state-backed crypto exchange would rule out such bad actors or major crashes as well.