Indonesia Extends Deadline for Crypto Exchange Licenses Enhancing Regulatory Compliance
Indonesia has extended the deadline for crypto exchanges to obtain Physical Crypto Asset Traders licenses allowing until late November 2024 for compliance. This regulatory update broadens participation by allowing legal entities to trade crypto assets and emphasizes the importance of Know Your Transaction standards. INDODAX and other exchanges welcome this extension as a chance to fulfill licensing requirements and enhance institutional involvement in Indonesia's growing digital asset market.
Indonesia Extends Deadline for Crypto Exchange Licenses Enhancing Regulatory Compliance
In a significant regulatory development the Indonesian Commodity Futures Trading Regulatory Agency known as Bappebti has announced an extension for local crypto exchanges to fulfill the requirements necessary for obtaining a Physical Crypto Asset Traders license (PFAK). This extension follows Bappebti Regulation No. 9 of 2024 and allows crypto exchanges until the final week of November 2024 to comply with the updated regulatory framework.
Bappebti Regulation No. 9 of 2024 represents the third amendment to the agency's rules governing physical market trading of crypto assets first established in 2021. This regulation facilitates the transition for registered crypto exchanges currently operating under provisional status to achieve full PFAK licensing. The extension provides additional time for prospective crypto exchanges to complete mandatory obligations including securing membership in the Futures Exchange and the Crypto Futures Clearing House.
INDODAX one of Indonesia's largest crypto exchanges expressed its approval of the extension. CEO Oscar Darmawan stated that the extra time would enable exchanges to better meet the necessary requirements. He highlighted that INDODAX has already made significant progress in the licensing process having secured crucial approvals for membership in both the exchange and the clearinghouse and is now awaiting final validation from Bappebti.
The updated regulation not only grants more time for compliance but also broadens the scope of participation in the crypto market. Previously only individuals could trade crypto assets but the new guidelines now permit legal entities and business enterprises to engage in crypto trading. This change is anticipated to foster greater institutional participation in Indonesia's rapidly evolving digital asset landscape.
Furthermore the regulation emphasizes the importance of Know Your Transaction (KYT) standards and mandates cooperation agreements with the Indonesian Directorate General of Population and Civil Registration (Ditjen Dukcapil). These measures are designed to enhance the overall integrity of the crypto trading ecosystem ensuring that exchanges adhere to necessary regulatory standards and practices.
As Indonesia continues to refine its regulatory framework for crypto assets the extended deadline is seen as a proactive step toward promoting a safer and more robust environment for both individual and institutional investors in the digital asset market.
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