Two-thirds of the board of directors and commissioners of cryptocurrency asset exchanges must be Indonesian residents who live in the country, according to a new regulation that is set to be issued by the Indonesian Trade Ministry.
The action was taken in response to the cryptocurrency exchange Zipmex in Southeast Asia experiencing financial difficulties that shortly stopped consumers from withdrawing money.
During an interaction with the reporters after a parliamentary hearing, Indonesia Deputy Trade Minister Jerry Sambuaga said, “We don’t want to give permits (to exchanges) carelessly, so only for those that meet the requirements and are credible.”
Jerry Sambuaga stated that the new rule would be released shortly by the ministry’s Commodity Futures Trading Regulatory Agency (Bappebti), although he did not specify when.
According to a document released by the Indonesian government, it will also forbid exchanges from reinvesting held crypto assets and mandate that an exchange employ a third party to keep customer cash.
During a parliamentary hearing, Didid Noordiatmoko, the acting head of Bappebti, said that having two-thirds of the board be Indonesian citizens could prevent the senior management from escaping if an issue with the exchange emerges.
When questioned about a delayed intention to establish an Indonesian cryptocurrency asset exchange from last year, Jerry Sambuaga stated the project might hopefully be finished this year.
The largest economy in Southeast Asia has witnessed a rise in cryptocurrency adoption, with the total value of all cryptocurrency transactions exceeding 1,000% in 2021 at USD 57.37 billion (859.4 trillion rupiah).