DIGIVESTASI - The opportunity for Indonesia to become a hub for crypto asset development in the Asian region can have a multiplier effect, from increasing foreign investment to creating jobs. However, there is a need to strengthen regulatory aspects and consumer protection to support the development of the country's crypto asset ecosystem. 

This was revealed at the Indonesia Cryptocurrency Trends and Outlook 2024 event organized by Tokocrypto in a hybrid manner in Jakarta, Wednesday (January 31, 2024). The event discussed the development trends and future prospects of crypto assets, both domestically and globally. 

Wan Iqbal, Chief Marketing Officer of Tokocrypto, said Indonesia has the opportunity to become the largest cryptocurrency development center in the Asian region (Crypto Asia Hub). This is possible thanks to the latest technological developments, such as Web 3.0 and blockchain.

"Now it can be said that there is no winner in the country that is able to develop Web 3.0 and of course this can also encourage an increase in foreign investment because there are now a million cryptocurrency projects around the world. "Imagine what kind of investment they can bring to Indonesia if Indonesia can become an Asian crypto hub that supports developers with legal security so that many different projects can participate there," he said. 

With the influx of foreign capital, the country's crypto asset industry can develop rapidly so that it is expected to make a major contribution to state revenue. In addition, the development of this industry also encourages openness in human resource development or in other words creates jobs for Web 3.0 talents. 

Several Asian countries are currently vying to become Asian crypto hubs, including Vietnam, Japan, and Hong Kong. Meanwhile, Vietnam is currently preparing for more than 3,800 blockchain projects, more than 400,000 software engineers, and more than 10 companies with market capitalization exceeding 100 million USD.

Education is important and a key factor in the development of the cryptocurrency ecosystem in Indonesia. Therefore, the government needs to increase adoption and cooperation to develop the cryptocurrency ecosystem in Indonesia. This is considering a number of potentials, such as financial literacy has been steadily growing for almost a decade, cryptoasset investors only account for 6% of the total population, and Electronic cryptoasset trading is growing but still limited to direct purchases and sales. (spot trading). 

"Education is important and a key factor in the development of the cryptocurrency ecosystem in Indonesia. In addition, investor protection is no less important because it requires certainty in terms of law, he continued.  Head of the Center for Market Development and Development of the Commodity Futures Trading Supervisory Agency (Bappebti) Tirta Karma Senjaya added that the Indonesian government is committed to mainstreaming digital asset innovation in its legal framework, with strong reasons. The goal is to create a safe and reliable business environment, while encouraging innovation and economic growth.  

Based on Bappebti data, by 2023 there will be 18.51 million crypto asset investors in Indonesia, an increase of 9.8% compared to the beginning of the year. On the other hand, the trading value of crypto assets decreased by 51.29% on an annual basis from IDR 306.4 trillion in 2022 to IDR 149.25 trillion.

"Indonesia has great potential in the digital asset ecosystem. "Crypto asset trading can be one of the government's strategies to accelerate, create and encourage efforts to develop Indonesia's digital economy," he said. In the midst of intense competition from Asian countries to become a hub for the development of crypto asset technology, Tirta continued, Indonesia does not want to be left behind. Therefore, the government seeks to create policies that support the development of the crypto asset ecosystem through regulations that facilitate innovation and increase public awareness of the potential for investment in crypto assets.  

Policy harmonization 
Tokocrypto CEO Yudhono Rawis hopes that the current taxation regime for crypto asset industry players can be adjusted to the latest government policies. In fact, the taxes imposed tend to be burdensome and make local businesses less competitive. "At least the VAT (Value Added Tax) can be changed because in the future, according to Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (P2SK Law), crypto assets are no longer classified as raw materials," he said: "Hopefully there will be coordination between existing regulations and tax regulations."

In addition, the development of crypto assets is expected to follow the latest developments in the global sector, such as derivatives. On the other hand, economic actors also hope that the OJK, which will later become the custodian of crypto assets, will no longer prohibit cooperation with other financial services institutions. 

As is known, the mandate to supervise crypto assets will be transferred from Bappebti to the Financial Services Authority (OJK) starting January 2025. Tirta said, this transition period will occur after the issuance of a government regulation (PP) which is still in the harmonization stage.

Previously, General Manager of Financial Sector Technology Innovation, Supervision of Digital Financial Assets, and Crypto Assets OJK Hasan Fawzi said his team continued to coordinate with Bappebti and Bank Indonesia to standardize preparations for the transition of management and supervision duties. digital financial assets and crypto assets from Bappebti to OJK. Several preparations have been made, including forming a transition team and outlining all needs to ensure a smooth transition.

"We are currently preparing a detailed plan regarding the development, regulation, and supervision of crypto assets in the form of a permissive, balanced, and collaborative framework. This aims to enable OJK to create optimal synergies with crypto stakeholders. develop, strengthen, and implement technology-based financial services while ensuring and maintaining aspects of compliance, risk mitigation, and market integrity, especially consumer protection," he said during the review press conference. Financial services industry findings and OJK policies at the December 2023 monthly meeting of the Board of Commissioners.  

In addition, OJK is also committed to implementing adaptive regulations and continuing to prioritize financial system stability, especially in terms of risk mitigation, taking into account the characteristics of crypto assets that are commercially vulnerable and at risk of money laundering and terrorism sponsorship and misuse of public funds. . To that end, OJK will also coordinate with law enforcement agencies, both domestically and globally.

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