Indonesia Promotes A National Cryptocurrency Exchange In 2023 After The Fall Of FTX

Key Points:

• The FTX failure prompted Indonesia to reform the crypto sector by establishing a national digital asset exchange.
• The country’s exchange hopes to be launched on June 6, 2023.
• The government is looking into which companies meet all the conditions to be part of a cryptocurrency exchange.

According to Bloomberg News, Indonesia’s Commodity Futures Trading Authority oversees digital assets and plans to set up a state-backed cryptocurrency exchange in the coming weeks. This year and private platforms will execute transactions on the exchange.

Indonesia is relying on the structure of the stock market to reform cryptocurrency exchanges and reduce the risks caused by the collapse of the digital asset exchange FTX.

As previously reported, in February of this year, Indonesian Trade Minister Zulkifli Hasan announced that he hopes to have a cryptocurrency exchange by June 2023.

Other planned state-backed agencies will handle clearing and custody to protect assets and avoid any repeat of the alleged fraud at FTX.

The design, which separates trading, clearing, and custody under official monitoring similar to how stock markets operate, is released as regulators worldwide intensify their examination of private cryptocurrency exchanges. The tumultuous bankruptcy of the FTX exchange in November left an $8 billion financial void and raised concerns that there are too many opaque and dangerous platforms for investors.

According to the report, the exchange was originally scheduled to operate in 2021, but it has been delayed several times due to the complexity of the process.

The government is looking into which companies meet all the conditions to be part of a cryptocurrency exchange.

So far, of the 25 exchanges registered with the Commodity Futures Trading Authority, five are active “de facto dealers of crypto assets,” also known as exchanges electronic money transactions.

On the other hand, the US is one of the countries cracking down after last year’s $1.5 trillion market meltdown caused a number of crypto organizations to blow up. Indonesian officials are viewed as being more open-minded about digital assets.

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