untitled design

Media: Indonesian crypto exchanges will be banned from reinvesting user funds

Indonesia is developing a set of rules for national cryptocurrency exchanges to root out foreign ownership and stop the reinvestment of user funds.

According to local media reports, the Indonesian government is seeking to limit foreign ownership of cryptocurrency exchanges by introducing a new rule requiring 66% of board members and directors of companies to be citizens of the country and reside in Indonesia.

National exchanges will be banned from self-custody of client funds and will be required to use the services of a third-party organization that is structurally independent of the exchange. Also, the Indonesian Ministry of Commerce plans to ban local exchanges from reinvesting deposited client crypto assets.

According to unnamed sources familiar with the situation, the reason for preparing the order was an analysis of situations related to the Celsius and Voyager crypto lenders, as well as the Zipmex crypto exchange. This step will reduce the likelihood of negative consequences for citizens and the country’s cryptocurrency industry.

It is noteworthy that in fact the process of “nationalization” of the crypto industry in Indonesia is already underway. Thus, the largest technology giant of Indonesia, GoTo Gojek Tokopedia Tbk, bought out 100% of the shares of the trading cryptocurrency platform PT Kripto Maksima Koin for 124.84 billion rupees ($8.38 million).

Source: Bits

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular