After the Fall of FTX, Indonesia promotes a national cryptocurrency exchange in 2023

The Key Points

After the failure of FTX, Indonesia decided to reform its crypto sector and established a national digital asset trading platform.

The country hopes to launch its exchange on June 6, 2023.

The government is currently evaluating which companies meet all requirements to be part of a cryptocurrency-exchange.

Bloomberg News reports that Indonesia’s Commodity Futures Trading Authority oversees digital assets. It plans to establish a state-backed cryptocurrency market in the coming weeks. The exchange will be accessible to both public and private platforms.

To reform cryptocurrency exchanges and reduce risks from the collapse of the digital asset trading platform FTX, Indonesia is relying upon the structure of its stock market.

As previously reported, the Indonesian Trade Minister Zulkifli Hazan announced in February that he hoped to establish a cryptocurrency exchange by June 2023.

Other state-backed agencies are also planned to handle clearing and custody in order to protect assets and avoid a repeat of the alleged fraud at FTX.

As regulators around the world intensify their scrutiny of private cryptocurrency exchanges, they have released the design. It separates clearing, trading, and custody. The November bankruptcy of the FTX exchange left an $8 billion financial void. It also raised concerns about too many dangerous and opaque platforms for investors.

According to the report, although the exchange was originally planned to open in 2021, it has been delayed multiple times due to the complexity and delays.

The government is currently evaluating which companies meet all requirements to be part of a cryptocurrency-exchange.

Five of the 25 registered exchanges with the Commodity Futures Trading Authority are currently active “de facto sellers of crypto assets,” also known under the name exchanges electronic money transactions.

The US is on the other side of the coin. It is one of the countries that are stepping down after the $1.5 trillion market crash last year, which caused many crypto organizations to go bust. Officials in Indonesia are more open-minded when it comes to digital assets.

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