Crypto asset market in Indonesia weakens. What is the solution?
Jakarta, Indonesia, October 27, 2022 /PRNewswire/ — The Crypto Asset Industry in Indonesia is still the focus of interest for many parties due to its development. Compiled from the latest data from the Commodity Futures Trading Regulatory Agency (CoFTRA). Aug 2022Crypto-asset investors have penetrated 16.1 million customers, but on the other hand, the crypto-asset industry is also witnessing a significant drop in the total transaction value in the period from January to Aug 2022 was recorded at IDR 249.3 trilliona decrease of 56.35% compared to the same period in 2021.
The decline in the value of crypto asset transactions since the beginning of 2022 is the impact of global economic conditions as the macroeconomic situation has not been good throughout the year due to the recession and challenges resulting in the crypto asset industry experiencing a bear market. According to Bitocto founder and CEO Milken Jonathan, the Fed’s (the central bank of The United States) will certainly continue absorb Liquidity from various assets and will continue to impact until a pivot from the Fed. But at a micro level, one of the reasons is the tax rate in Indonesia, where trading fees tend to be cheaper on global exchanges and some are even free for certain pairs. “Certainly, with the tax rate, it is difficult for local exchangers to remain competitive and there may be capital outflows due to the tendency to trade with foreign exchangers. In view of the macro situation that has such an impact, the government can first consider relaxing some of the rules,” said Milken. Andry AlamsyahS.Si, M.Sc added, according to Andry, “Bear market conditions are repeated conditions and have occurred in the past. It is good for the crypto industry that existing projects can focus on basic functions during bear market conditions when conditions recover, the products/services offered by the project are more legitimate and mature. The blessing in disguise of this bear market state can be used by crypto asset developers to conduct deeper research to produce product results with better fundamentals.”
Indonesia Blockchain Association (ABI) Chair Asih Karnengsih said that bear market conditions require that we focus on activities that can strengthen the industrial ecosystem at the national level because Indonesia still has great potential. Therefore, it is hoped that all stakeholders, both from government and economic actors and all stakeholders, “can continue to work together to protect the crypto-asset industry by improving/evaluating existing policies, such as: B. the coin or token grading system included in CoFTRAs whitelist until the crypto asset exchange opens immediately.”
However, amid several unresolved issues, the Department of Commerce, through CoFTRA, has issued Circular (SE) No. 208/BAPPEBTI/SE/08/2022 regarding the termination of issuance of registration permits for Candidate Physical Crypto Asset Dealers (CPFAK), which is suspected violating unlawful norms and causing losses to CPFAK, both those who are currently and those who will conduct the registration process. if persons Consider other technology-based financial industries, such as B. Electronic Money Operations under the supervision of Bank Indonesia and Online Loans under the supervision of OJK, a moratorium on the registration process was also implemented. if persons can use this as a reference, the development of technology and markets is indeed ahead of the law/regulations. On the one hand, a moratorium on the approval process can certainly be considered in order to adapt the implementing provisions to the current market conditions, which are completely uncertain in terms of the protection of consumers and economic operators Indonesia.
In addition, several companies are in the registration process that have complied with the provisions of CoFTRA Regulation No. 8 of 2021 such as capital fulfillment, business plan development, application development, compliance with security certification standards and others, which of course causes material losses to economic actors. This certainly goes against the government’s spirit of expanding investment opportunities and creating new jobs Indonesia.
Meanwhile, the Director General of Taxes at the Ministry of Finance, Suryo Utomosaid, “Taxation of crypto assets PPh 22 is the same starting in June. That means that in the third month we get June, July and August IDR 125 billion. PPh22 is IDR 60 billionthat is the rate 0.5% later for VAT IDR 65 billion,” Suryo said at DGT headquarters, South Jakarta, Tuesday (04/10/2022). This total includes earnings from PPh 22 from crypto-asset transactions through Trading Operators through Electronic Systems (PPMSE) and/or self-contributions. Given the large contribution of crypto-asset trading to government revenue, the government should lift the moratorium immediately or, if necessary to maintain the moratorium, continue to grant the right to proceed to companies that filed a registration process before the moratorium was enacted the admission procedure. This will certainly be seen as a sense of justice for parties that have good intentions as per the Perba 8/2021 regulations.
In addition, the opening of the Crypto Asset Exchange has yet to become another issue that is critical in the Department of Commerce’s regulatory and oversight process. Even though the establishment of the crypto asset exchange is urgent considering that the exchange acts as a forum to monitor crypto asset trading Indonesia, which was originally scheduled to be inaugurated by the end of 2021. There are currently candidates for the Crypto Asset Exchange that have registered with CoFTRA and meet the material requirements of Perba 8/2021, namely PT Digital Futures Exchange (DFX). DFX Director Oham Dunggio said: “In terms of readiness, we are 100% operational for the content and technical reporting requirements. Additionally, DFX is awaiting approval from CoFTRA to fully support the growing crypto asset industry Indonesia.”
Meanwhile, from the business side, Robby as CCO of Reku said, “Crypto asset exchange for the crypto industry is a big problem for CPFAK at the moment. Considering the crypto asset trader status will never be perfect as the industrial ecosystem is not yet ideal. After all, supporting institutions like the Crypto Asset Exchange aren’t formed yet.”
Look at the state of the crypto asset industry Indonesiathat is as deep as a bear market, recovery efforts are needed to maintain the stability of the crypto-asset trading ecosystem Indonesia. ABI and the entire ecosystem hope that the government will immediately plan various decisive measures and swift measures against various problems in the crypto-asset industry.
SOURCE Asosiasi Blockchain Indonesia