The value of crypto transactions in Indonesia has sharply declined over the past three years. Citing data from Bappebti, as presented by Hasan Fawzi, the Chief Executive of the Financial Technology Innovation, Digital Financial Assets, and Crypto Assets Supervisory Agency, as well as a Commissioner of the OJK, this decline has been quite significant.

For instance, in 2021, the value of crypto transactions in Indonesia reached Rp859 trillion. However, following that, the transaction value began to decrease. In 2022, for example, the transaction value was only Rp306.4 trillion. Meanwhile, in 2023, up to September, the transaction value had only reached Rp94.4 trillion. This decline contrasts with the increasing number of crypto asset investors during the same period.

In 2021, the number of crypto investors reached 11.2 million people. In 2022, it increased to 16.7 million individuals. Furthermore, by September 2023, the number of crypto investors in Indonesia had risen again to 17.9 million.

This decrease in transaction value is also inversely related to the crypto assets traded in the physical crypto asset market. According to the same data, the number of crypto assets traded increased from 383 in 2022 to 501. Hasan suggests that this decline may have been caused by several factors.

One of these factors is the end of the peak period of the COVID-19 pandemic. During the pandemic, many people utilized unused funds due to the real sector's lack of transition to crypto assets, but this situation has now changed.

Another factor affecting this decline is the implementation of Regulation No. 68 of 2022 from the Minister of Finance regarding Value Added Tax and Income Tax on Crypto Asset Trading Transactions. Despite the relatively small tax component imposed, the tax regulations received a negative response from market participants.

Another issue is related to crypto fraud overseas. Hasan mentioned that the combination of these factors has had a significant impact on the recent decline in crypto transactions.