Jerry Sambuaga, Deputy Minister of the Indonesian Ministry of Commerce, has proposed a rule that would require the management of the country’s cryptocurrency exchanges to be more representative of its citizens.
At a parliamentary meeting on Tuesday attended by Indonesian regulatory officials, a letter submitted by Sambuaga suggested several policy changes in response to the “interesting year for the development of physical trading of crypto assets” in the country. Among the proposed rules is a requirement that two-thirds of the directors and commissioners of crypto companies be “Indonesian citizens and domiciled in Indonesia.”
A Wednesday report from Bloomberg suggested that the proposed changes to the country’s cryptocurrency policy may have been influenced by the legal battle involving Terra co-founder Do Kwon. The South Korean national left the country for Singapore in April and his current whereabouts are unknown at the time of publication, despite officials issuing an arrest warrant and Interpol reportedly placing Kwon on its watch list. red.
According to the report, the acting head of the Indonesian Commodity Futures Trading Regulatory Agency, Didid Noordiatmoko, said that the rule was intended to prevent crypto company leaders from “fleeing the country if any trouble arose.” In addition to the rule for citizens, Sambuaga proposed that crypto companies have a minimum capital requirement of Rs 100,000 crore, approximately $6.7 million at the time of publication, and that user funds be stored in institutions. third-party financial institutions or futures clearinghouses.
With a population of more than 275 million people, approximately 11 million in Indonesia invested in cryptocurrencies in 2021, according to Sambuaga. The country’s Commodity Futures Trading Regulatory Agency showed that there were 25 registered cryptocurrency exchanges as of April 2022, including local branches of Zipmex and Upbit.
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