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Cryptocurrency transactions in Indonesia surged to $1.92 billion in February.

This rapid growth can be attributed to the increasing awareness of cryptocurrencies in Indonesian society, as well as the increased availability of trading platforms and financial services.

Date: 2024-03-18 Author: Marek Stiller
Cryptocurrency transactions in Indonesia surged to $1.92 billion in February.

According to the national regulator, the number of cryptocurrency transactions in Indonesia increased significantly in February, reaching IDR 30 trillion($1.92 billion).

TheCommodity Futures Trading Supervision Agency (Bappebti) reported that the number of registered cryptocurrency traders in the country also saw a significant increase, reaching 19 million last month, an increase of 170,000 users compared to January.

The remarkable increase in cryptocurrency transactions can be attributed to positive market sentiment fueled by the rise in the price of Bitcoin (BTC) and the rise in the price of altcoins, which refer to tokens other than Bitcoin.

Indonesia to surpass transaction volume registered in 2021

The regulator said Indonesia could match or surpass the transaction volume achieved during the 2021 bull market, which amounted to $51.28 billion.

Tirta Karma Senjaya, a representative of Bappebti, said a rebound is expected in 2024, given the downward trend seen in 2022 and 2023. Bitcoin ‘s upcoming halving is seen as a key catalyst for this expected revival.

Bappebti believes that reducing or eliminating taxes on cryptocurrencies would be a beneficial approach to achieving the goal of increasing cryptocurrency transactions.

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Currently, cryptocurrency-related transactions are subject to income tax of 0.10% and value-added tax(VAT) of 0.11% on users. On the other hand, transactions related to cryptocurrency exchanges, deposits and clearing house are subject to a 0.02% tax.

At a recent event, Tirta said: “I have said before that this (crypto) industry is still in its embryonic stage, so imposing high taxes could kill it.”

In addition, the transfer of cryptocurrency oversight to the Financial Services Authority (FSA) in January 2025 is expected to bring significant changes. This transition could include reclassifying cryptocurrencies as securities and revising VAT policies, potentially shaping the regulatory landscape for cryptocurrencies in Indonesia.

Indonesia is introducing new cryptocurrency laws.

Last week, Indonesia’s financial services regulator, the Office of Financial Services Supervision (OJK), published new laws that will go into effect in January 2025. Under these laws, banks, insurance companies and other financial industry players will be able to take advantage of new technologies and explore new opportunities.

The newly implemented regulations take into account the impact of technological advances on various financial products and services, as well as the digital activities of businesses. Although the regulations do not go into specific details, they provide a basis for managing progress in the crypto space in the financial sector.

To facilitate a smooth transition, OJK is working closely with the current cryptocurrency regulator, Bappebti, and Indonesia’s central bank, Bank Indonesia. Together they are forming a transition team to manage the change in supervision of digital financial assets.

In addition to domestic efforts, OJK is engaging in international cooperation to establish a comprehensive cryptocurrency policy. The agency has partnered with financial authorities in Malaysia, Singapore and Dubai to develop a robust framework for regulating cryptocurrencies.

It has also drafted memoranda of understanding with Malaysia’s Bank Negara, Singapore’s monetary authorities and Dubai’s virtual asset regulator.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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