Indonesia Adjusts Licensing Deadline for Exchanges

The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has announced an extension for crypto exchanges to meet the requirements for obtaining the Physical Crypto Asset Traders (PFAK) license. Under Regulation No. 9 of 2024, exchanges now have until the end of November 2024 to comply with the new standards.

Regulation No. 9/2024 marks the third amendment since its initial release in 2021. A key change is the allowance for exchanges currently in provisional status (CPFAK) to take more time to transition to a fully licensed PFAK status.

INDODAX, one of Indonesia’s largest exchanges, welcomed the decision. Its CEO, Oscar Darmawan, stated:

We warmly welcome this decision as it provides room for more exchanges to fulfill their obligations in line with current regulations.

The new regulation not only extends the deadline but also permits legal entities and businesses to trade crypto assets, whereas previously, trading was limited to individuals. This change is expected to attract more institutional investors to the market.

Exchanges must comply with strict Know Your Transaction (KYT) standards and sign cooperation agreements with the Indonesian Directorate General of Population and Civil Registration (Ditjen Dukcapil). Additionally, all CPFAKs must become members of the Crypto Asset Futures Exchange and the Crypto Asset Clearing House within seven working days of receiving their registration certificate.

Tokocrypto, a subsidiary of Binance, recently became the third exchange to secure a PFAK license. With over 4.5 million users and trading volume up 170% since 2023, Tokocrypto now holds 43% of Indonesia’s crypto market following Binance’s acquisition in December 2022.

Recently, Tokocrypto collaborated with Indonesia’s Criminal Investigation Agency to dismantle a crypto scam, seizing approximately $200,000 and arresting multiple suspects involved in a “pig butchering” fraud scheme.