Indonesia extends crypto exchange license deadline and expands market participation

Indonesia’s Commodity Futures Trading Regulatory Authority (Bappebti) has announced an extension of the deadline for cryptocurrency exchanges to obtain a Physical Crypto Asset Dealer (PFAK) license. The decision was made in accordance with Bappebti Regulation No. 9 of 2024, which stipulates that cryptocurrency exchanges must comply with the latest regulatory standards by the last week of November 2024. The regulation marks the third revision of its rules for organizing transactions in the physical market of crypto assets, which were originally formulated in 2021. It outlines the transition from the current provisional status of registered cryptocurrency exchanges (CPFAK) to the fully licensed PFAK status. The changes, including the extension, allow potential crypto exchanges more time to complete the required obligations, such as becoming a member of a futures exchange and crypto futures clearing house. The new regulations provide additional time for crypto exchanges and expand the scope of participation in the crypto market. Previously, only individuals were allowed to become crypto asset clients. The new guidelines allow legal entities and commercial enterprises to trade crypto assets. INDODAX, one of Indonesia’s largest crypto exchanges, welcomed the extension. Its CEO Oscar Darmawan mentioned in the statement that the additional time will allow the exchange to meet the requirements. Darmawan also stressed that INDODAX has completed important parts of the process, including obtaining key approvals for exchange and clearing house membership, and is now awaiting final verification from Bappebti.