he government is set to tighten its grip on cryptocurrency trading in the country in a move that analysts say will slow the growth of the industry but will serve the long-term interests of investors.
The regulation, which is to be introduced by the Futures Exchange Supervisory Board (Bappebti), will require crypto exchanges to ensure that two thirds of the members of their boards of directors or commissioners are Indonesian, to meet certain minimum transaction levels and to have a minimum of Rp 100 billion in capital, twice the current figure, among other rules.
Earlier this year, the government began collecting value-added tax (VAT) and income tax on crypto capital gains and transactions.
Nailul Huda, who heads the Center of Innovation and Digital Economy at the Institute for Development of Economics and Finance (INDEF), a think tank, told The Jakarta Post on Thursday that the more stringent cryptocurrency regulations would come at a cost.
“It could slow down the growth of the crypto industry,” Nailul said.
Read also: From fine dining to bankruptcy: Indonesian crypto scammers trick gullible investors
Cryptocurrency participation has grown significantly in the country over the past years. In June, 15 million Indonesians had crypto investments, while only 9 million had traditional equities investments, Finance Ministry data shows.
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