Indonesia has launched the world’s first state-backed cryptocurrency exchange, supervised by the Commodities Futures Trading Supervisory Agency.
The bourse will list licensed crypto companies and aims to strengthen the regulatory environment for the country’s booming cryptocurrency sector. While the use of cryptocurrencies as a payment medium is currently prohibited, investments in cryptocurrency are allowed. Indonesia saw a significant increase in crypto trading in 2021, reaching $56 billion.
The new exchange requires businesses to obtain a crypto exchange provider (CEP) license and meet certain criteria. Indonesia’s fintech industry is competitive, with P2P lending and e-payment platforms dominating. Foreign fintech firms can fill the financing gap for underbanked adults. The country has a high smartphone penetration rate and a growing middle class, making it a potential battleground for digital payment apps.
Indonesia Launches World’s First State-Backed Cryptocurrency Bourse (aseanbriefing.com)
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