The crypto exchange was officially authorized by Bappebti on July 17, 2023. This crypto exchange will later be managed by PT. Nusantara Commodity Exchange, or Commodity Future Exchange (CFX), appointed by the Ministry of Trade as the manager of the Indonesian crypto asset exchange.
Meanwhile, the crypto asset futures clearing institution will be managed by PT. Nusantara Commodity Exchange, and crypto asset storage will be managed by PT. Tennet Depository Indonesia.
The presence of crypto asset exchanges, clearing institutions, and managers of crypto asset storage can strengthen the crypto ecosystem in Indonesia. Crypto transactions in Indonesia will also be easier and more transparent, which can attract public trust to start getting into the world of crypto.
What is a Crypto Exchange?
A crypto exchange is a forum that oversees the trading of crypto assets in a country. Crypto is a high risk high gain digital asset. The existence of crypto exchanges is aimed at supervising and regulating all crypto transactions in Indonesia and protecting the public from such transactions.
The existence of a crypto exchange is a manifestation of the government’s seriousness about creating business certainty and a fair crypto asset trading ecosystem. Crypto Asset Exchanges, Clearing Houses, and Crypto Asset Storage Managers will make crypto asset transactions more transparent and effective so that the crypto industry in Indonesia can run, be well maintained, and be able to contribute to the economy through state revenues.
Functions and Benefits of Crypto Exchanges in Indonesia
The presence of crypto exchanges can strengthen Indonesia’s position as a trading and innovation center for crypto assets, digital exchanges, and digital ecosystems in Southeast Asia. The existence of crypto exchanges is also used as a supervisor for players and industry players so as to avoid monopolistic actions from crypto industry players.
Plus, currently, the interest of the Indonesian people in crypto is very high. The number of crypto asset customers as of June 2023 was recorded at 17.54 million, with an average addition of 490 thousand customers per month. Naturally, the development of physical trading of crypto assets is still quite promising for the future.
Many companies, such as Meta, Google, and Twitter, have started using blockchain technology in their business activities. Later, the crypto exchange will not only become a crypto trading platform but will also guarantee the continuity and safety of the crypto world in Indonesia.
Thus, CFX, as the manager of the crypto exchange, is committed to openness, transparency, governance, and accountability in supervising the movement of the crypto industry in Indonesia. It doesn’t stop there, CFX will also educate the public about crypto to increase crypto financial literacy in Indonesia.
Get to know Indodax on the Indonesian Crypto Exchange
Indodax, as the largest crypto exchange in Indonesia will certainly become one of the crypto asset traders on the crypto exchange. Indodax itself has more than 200 crypto assets that are ready to be traded.
Not only that, Indodax also has excellent features that are very useful for its users, such as a two-factor authentication (2FA) security feature, easy-to-use trading, deposit and withdrawal features, chart analysis features, and stop loss features.
In addition, Indodax also has a complete data presentation, easy application use, many choices of ways to deposit, two different types of orders, and its own crypto wallet. Indodax is also committed to increasing public literacy about crypto by providing educational content and the latest crypto news updates through the Indodax Academy program.
Risks and Considerations in Transactions on Crypto Exchanges
Crypto is an intangible commodity in the form of a digital asset, that uses cryptography, peer-to-peer networks, and distributed ledgers, to manage the creation of new units, verify transactions, and secure transactions without third party interference. However, due to high price fluctuations, crypto is often used as a medium for money laundering crimes and terrorism funding.
The presence of crypto exchanges in Indonesia can prevent crypto-related crimes. However, it is possible that there will be additional fees when transacting through an exchange, which are estimated at 0.02% for exchange, depository, and clearing fees. This additional fee can certainly be burdensome for traders in Indonesia. Therefore, Indodax will subsidize these additional costs so that customers are not charged additional fees.
This action is taken to ensure that customers continue to transact domestically and do not conduct transactions abroad. This is because the addition of excessive costs can cause the crypto industry in Indonesia to be unable to compete compared to the foreign crypto industry, which can make investors prefer to transact abroad.
Conclusion
The existence of crypto exchanges is an effort by the government to ensure legal certainty and protection for the public in transactions using crypto. So that people can transact safely and provide value to the economy and trade.
These crypto exchanges can also serve as a tool to gain the trust of the public, thereby encouraging them to start making transactions with crypto assets.
That way, the potential to encourage the growth of crypto transactions at the domestic level is high. This is because the formation of this exchange functions as surveillance so that people can transact safely and comfortably. The prospect of the crypto market can also get better after the crypto futures exchange.
However, before starting to transact using crypto, you need to realize that doing in-depth research and analysis is very important. Don’t get caught up in a “Fear of Missing Out” (FOMO) atmosphere.
Do a thorough analysis to calculate the risks that may arise. This process includes an in-depth evaluation of the crypto assets to be traded, to seeking information regarding various related service fees.
