Indonesia's crypto market To da moon in 2024: The regulatory landscape you need to know.

The cryptocurrency scene in Indonesia has been really bullish in the past two years. In 2024, the revenue reached $577 million, and it jumped from 20th to 7th place in the global cryptocurrency adoption index (2023), at an incredible speed. Over 160,000 users have opened accounts for cryptocurrency trading, surpassing the number of stock market accounts.

Why has Indonesia suddenly become so popular?

In the end, it boils down to three words: demographic dividend. With a population of 270 million, young people, a love for technology, and a high internet penetration rate. Last July, Indonesia launched a national-level encryption trading platform (PT Bursa Komoditi Nusantara), which is the world's first government-supported official coin trading platform. To put it bluntly, the government is placing a bet.

What are the current rules?

Core Logic: Indonesia treats coins as commodities, not as money.

What you can do:

• ✅ Trading (but must be on a licensed platform)
• ✅ Mining
• ✅ NFT Trading
• ✅ DeFi operations
• ❌ Pay with coin

The regulatory authority is currently Bappebti (Commodity Futures Trading Regulatory Agency), but this matter has been reformed - starting from January 2025, power will be transferred to OJK (Financial Services Authority).

What do you need to do to start a Cryptocurrency Trading business in Indonesia?

Several hard requirements:

1. The starting capital should not be less than 50 billion Indonesian Rupiah (approximately 31 million RMB)
2. Net assets on the books ≥ 40 billion Indonesian Rupiah
3. Obtain government IT system service provider certification (PSE)
4. Complete review by Bappebti
5. Transaction data is retained for 5 years, and the server must be located in the country.

A total of 229 coins have been approved for trading in Indonesia.

How to calculate taxes?

Now according to the commodity tax:

• encryption income tax: 0.1%
• Value-added tax: based on the purchase amount

However, this may also change in 2025. After OJK takes over, the tax framework will need to be readjusted, so keep an eye on official updates.

New Trends in 2024

In March, OJK took a big move - teaming up with Malaysia, Singapore, and Dubai to establish a framework. Highlights of the new regulations:

• Customer Protection Guide
• Innovation Sandbox (Businesses can test new features)
• Test Result Reporting System

OJK is also forming a transitional team with Bappebti and the central bank to ensure that the power transfer goes smoothly.

How to view the future?

The Indonesian government's attitude in this wave is very clear: embrace and not prohibit, guide and not stifle. The establishment of the national exchange itself is a signal — they want to integrate the cryptocurrency trading sector into the formal financial system. With the advantages of a large young population and a significant number of internet users, Indonesia has the potential to become the cryptocurrency center of Southeast Asia in the next five years.

But don't forget the risks: policies are still evolving, the tax framework may be adjusted, and compliance costs are on the rise. Institutions or individuals intending to dig deep in Indonesia must keep a close eye on OJK's subsequent actions.