Indonesia forms digital asset regulatory committee as investors hit 20 million

Indonesia‘s commodities watchdog has launched a new committee to steer digital asset oversight as the number of digital currency investors hits 20 million.

This week, the Commodity Futures Trading Regulatory Agency, known locally as Bappebti, announced the ‘Crypto Asset Committee’ to monitor the rapidly growing industry.

The new committee comprises various industry stakeholders, including representatives from government ministries and digital asset exchanges. Others include financial industry associations, clearing institutions, and academics.

Its duties will include managing a central database for the sector, analyzing industry trends and reports, assessing risks and opportunities, and recommending relevant actions to the watchdog.

It will also recommend that digital assets be added or delisted from the bourses. Bappebti first issued a list of whitelisted digital assets for the country’s trading platforms in 2020. Two years later, it updated the list from 229 to 383. Aside from Bappebti, the country’s Financial Services Authority (OJK) can also order exchanges to delist tokens, as it did with Singaporean coins Vidy and VidyX.

“This committee will be a driving force, ensuring that the crypto asset industry continues to operate smoothly and remains within the applicable legal framework,” commented Ir. Kasan, the head of Bappebti.

“Therefore, optimizing the role of the Crypto Asset Committee should be a key focus in implementing the current crypto asset ecosystem.”

Industry stakeholders welcomed the new committee, which they believe showcases the government’s support for the sector.

Oscar Darmawan, the CEO of INDODAX, one of Indonesia’s largest exchanges, described the committee as a “balanced form of framework between innovation and risk management.”

“With the establishment of the Crypto Asset Committee, [Bappebti] CoFTRA has shown a strong commitment in creating a clear and regular framework for the crypto asset industry in Indonesia. This step is very positive and is a big impetus for the growth of the crypto asset ecosystem in the country,” he told one local outlet.

The latest regulatory moves come as Indonesia’s digital asset industry records strong growth this year. Local reports reveal that the number of digital asset holders has hit 20 million, with trading volume tripling in March month-on-month.

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