Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has extended the deadline for local cryptocurrency exchanges to meet licensing requirements under the Physical Crypto Asset Traders (PFAK) framework.
The extension, granted under Bappebti Regulation No. 9 of 2024, gives exchanges until the last week of November 2024 to comply with the updated standards, according to an official announcement.
The decision follows Bappebti’s third amendment to its rules governing the organization of crypto asset trading, initially set in 2021.
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New Regulations Push Exchanges To Full PFAK Licensing
The updated regulations require registered exchanges (CPFAKs) to transition from provisional status to fully licensed PFAK entities, ensuring they meet the necessary regulatory obligations. These obligations include joining the Futures Exchange and the Crypto Futures Clearing House.
INDODAX, one of Indonesia’s largest crypto exchanges, welcomed the deadline extension. In a comment, CEO Oscar Darmawan said the additional time would allow exchanges to meet the requirements more efficiently.
“We warmly welcome this decision, as it provides space for more exchanges to fulfil their obligations in accordance with the applicable regulations,” Darmawan said.
The new regulation not only grants exchanges more time but also expands participation in Indonesia’s crypto market. Previously, only individuals could engage in crypto trading. However, legal entities and businesses can also participate now.
INDONESIA EXTENDS CRYPTO EXCHANGE LICENSE APPLICATION DEADLINE
Indonesia's Commodity Futures Trading Regulatory Agency, known as Bappebti, has extended the deadline for crypto exchanges to secure their Physical Crypto Asset Traders license to the last week of November 2024.… pic.twitter.com/WeGckl9lpn
— Crypto Town Hall (@Crypto_TownHall) October 21, 2024
Bappebti’s regulatory framework also requires exchanges to adhere to Know Your Transaction (KYT) standards and establish cooperation agreements with Indonesia’s Directorate General of Population and Civil Registration (Ditjen Dukcapil).
Last month, Indodax suffered a hack that caused the theft of over $22 million worth of various tokens. The attack targeted Indodax’s hot wallets, according to security researchers from Slowmist and CertiK.
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Binance-Backed Tokocrypto Gains License in Indonesia
The extension also comes after Binance subsidiary Tokocrypto secured a full license from the country’s Commodity Futures Trading Regulatory Agency (Bappebti).
Since 2014, Indonesian exchanges have been categorized as “prospective crypto exchanges,” operating under provisional regulatory frameworks. Tokocrypto was registered in 2019 as a Prospective Physical Crypto Asset Trader (CPFAK).
The move comes after Bappebti’s 2019 mandate requiring all crypto exchanges to seek proper authorization to continue operating legally in the country.
Data from CoinGecko shows Tokocrypto held a commanding 43% share of Indonesia’s centralized exchange market in 2023, making it the largest crypto exchange by trading volume. Indodax follows closely with a 42% market share, while Upbit Indonesia holds 15%.
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