Cryptocurrency regulation and the situation with the influence of digital finance in Muslim countries is one of the most interesting topics that many members of our crypto community are interested in. We have already talked about how cryptocurrencies penetrate the economy of the UAE and Malaysia. In this article we will talk about the state of the cryptocurrency market in Indonesia.
According to the Indonesian Ministry of Commerce, transactions with digital currencies increased increasing from 60 trillion rupees ($4.1 billion) in 2020 to 859 trillion rupees ($59.83 billion) in 2021.
Over the past two years, cryptocurrencies in Indonesia have surpassed traditional stocks in popularity and continue to be a popular form of saving and paying. At the beginning of 2o22, Indonesia’s Vice Minister for Trade Jerry Sambuaga stated that more than 11 million Indonesians participated in the purchase and sale of cryptocurrencies in 2021. For comparison, the total number of portfolio investors for the same period was only 7.35 million.
Yes, this is not a very big figure, because 11 million Indonesian crypto investors make up only about 4% of the total population, but this only shows that digital currencies in this country have a huge potential for growth.
Indonesia’s regulatory authorities are striving to create all the necessary conditions for safe trading and use of cryptocurrencies. Although crypto assets are still not an official means of payment, companies can buy and sell cryptocurrency as a commodity. Since 2019, cryptocurrency trading in Indonesia has been officially controlled and regulated by the Commodity Futures Trading Regulatory Agency (BAPPEBTI), the official regulatory body under the country’s Ministry of Commerce.
This governing body is, among other things, responsible for the verification, documentation and approval of companies and commodity items allowed to trade in Indonesia. As of 2021, the list of assets allowed for purchase includes 229 crypto tokens, including such popular assets as BTC, ETH and Polkadot.
“With the introduction of rules governing the purchase and sale of cryptocurrencies, all the necessary conditions are being created in Indonesia that support guarantees for citizens and companies when conducting crypto transactions,” Jerry Sambuaga said in an official statement.
Cryptocurrency boom in Indonesia has also led to an increase in the popularity of exchange services, especially among young investors. As of March 2022, 17 crypto exchanges have been registered in Indonesia, in which, according to official authorities, about 5 million citizens participate in auctions. An important factor in this impressive growth is that Indonesia is a country with one of the highest levels of Internet penetration in the region. In 2021, the number of Internet users was 73.7%.
At the beginning of 2022, the Blockchain Association started working in Indonesia, uniting local companies engaged in the creation and development of projects based on this revolutionary technology. The association includes not only exchanges, but also startups and technology companies that use blockchain in their ecosystems.
“Regulatory authorities in Indonesia have been adapting to technological changes over the past 10 years, from e-commerce to taxi rides… Indonesia already has clearly defined rules for exchanges and crypto trading. Over the past 24 months, regulators have taken more proactive steps regarding digital assets that will help the spread of cryptocurrencies,” says Steven Suhadi, co-founder of Indonesia Crypto Network and co-founder of the Indonesian Blockchain Association.
Given the trend towards an increase in the number of cryptocurrency users in Indonesia, we can safely say that this country will show further growth and increase the base of owners of digital assets.
IslamicCoin is the first project to provide the community with powerful financial technology that allows for seamless transactions, support innovation and charity. The project is 100% compliant with Sharia law and benefits the community. Developers focus on sustainable development and use technology and innovation to ensure financial sustainability.
“At the heart of Islamic finance is the prohibition on charging interest. Islamic finance has always been focused on not shifting most of the risks to one side of the financial relationship. In Islamic finance, balance and transparency of transactions should be observed, which can negatively affect our society,” says Mohammed Alhashmi, one of the founders of IslamicCoin.
Islamic Coin is aimed at 1.1 billion Muslims using the Internet. The project creates convenient tools designed for users who have never been owners of cryptocurrencies. Thus, the creators of IslamicCoin are expanding the capabilities of the Muslim online community by providing it with opportunities to use a new form of digital money and involving them in the modern digital world.