Indonesia wants to regulate its fast-growing crypto market 

With the crypto market’s continuous expansion (and without any signs of slowing down) the Indonesian government has no choice but to regulate its fast-growing influence in the country. 

Indonesian regulators are now acting fast to implement policies that could better oversee the faster-than-expected rise of the crypto market in the country. 

It has grown so big that last year that cryptocurrency transactions in the country had already reached almost 65 trillion rupiahs. At the start of the year up until May, it has increased to 370 trillion rupiahs which, again, is purely crypto transactions. 

Legal framework

Three years ago, cryptocurrencies were legalized by Indonesia, a few months later the government, through Bappebti Regulation No.5 of 2019, has pushed for the creation of a legal framework for cryptocurrencies. 

The Indonesian government had seen the rapid rise of cryptocurrencies in the country. Crypto investors started from 1.5 million and immediately shot up by 4.2 million with a daily trading volume of 1.7 trillion rupiahs. 

Surprise: Crypto not for payment

The cryptocurrency has grown by leaps and bounds in Indonesia, but one of the most surprising things is that Indonesians do not actually use cryptos for payment transactions. 

It is not actually by choice but because of the existing law in Indonesia which says that cryptocurrencies must only be used for investment purposes. 

Indonesia’s central bank also made it clear that even with cryptos’ rising popularity, they are still not permitted to be used for payments transactions. The country’s rupiah, Indonesia’s official currency, remains as the only currency to make payment transactions.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/indonesia-wants-to-regulate-its-fast-growing-crypto-market/