The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has introduced new regulations under Regulation No. 9/2024, allowing institutional investors to enter the crypto market through registered Physical Crypto Asset Traders (PFAK).
This policy is viewed as a step toward making Indonesia a key crypto hub in Asia and has received a positive response from industry leaders.
Robby, Chief Compliance Officer (CCO) of Reku and Chairman of the Indonesian Crypto Asset Traders Association (Aspakrindo), expressed that this regulation would support the growth of Indonesia’s crypto industry.
“This policy moves Indonesia closer to becoming Asia’s crypto hub. Indonesia has already made history as the first country in the world to operate a dedicated crypto exchange,” he said on Monday, November 4, 2024.
Bappebti has also authorized crypto derivative products, which expands the industry by attracting a broader spectrum of stakeholders, from individual investors to institutional players.
According to Robby, these developments indicate that crypto assets are becoming competitive investment options, joining traditional assets like stocks and bonds.
On the global front, institutional interest in crypto is increasing steadily. Robby referred to a recent report by fintech company River, which found that US companies collectively hold 683,332 Bitcoin, or about 3.3 percent of the total Bitcoin supply as of August 2024.
Industry leaders like MicroStrategy and Tether are significant players, collectively making up 85 percent of Bitcoin purchases in the first quarter of this year. River projects that around 10 percent of U.S. companies may convert 1.5 percent of their cash reserves into Bitcoin.
While institutional ownership of Bitcoin is still relatively low, the rising trend signals optimism about crypto assets. Robby sees this as a positive outlook that aligns with Indonesia’s commitment to staying up-to-date with global crypto industry developments, strengthening the country’s international position.
Currently, there are approximately 560 million crypto investors globally, with Indonesia contributing 21.28 million of these investors, surpassing the number of stock market investors.
Robby believes the steady growth in global and domestic crypto investors underscores the demand for digital assets, which could attract even more institutions to this sector.
To support institutional adoption, Bappebti has implemented clear guidelines for Know Your Transaction (KYT) and Anti-Money Laundering (AML) procedures, expected to encourage domestic institutions to consider crypto.
“This step could serve as a gateway to further innovations in Indonesia’s crypto industry. Reku is ready to collaborate with regulators in developing new products and services that will increase public interest and trust in crypto assets,” Robby concluded.
