XRP Remittance Tech Expanded to Three Countries by $138,000,000,000 Financial Giant’s Subsidiary

September 6, 2023 The Daily Hodl

Indonesia launches its crypto exchange and clearing house

July 21, 2023 Coin Telegraph

The platform, monitored by the CFTRA, will be the only space in the country where the legal exchange of digital assets is allowed.

The national cryptocurrency exchange, announced by the Indonesian government a week ago, has begun to function, according to a statement from the country's Commodity Futures Trading Supervisory Agency (CFTRA). The platform will be the only space in the country where the legal exchange of digital assets is allowed.

CFTRA confirmed the opening of the exchange on July 20. In addition, the CFTRA decree establishes a Futures Clearing House along with the exchange. A clearing house is essentially a mediator between a buyer and seller, ensuring the transaction goes smoothly.

Previously it was reported that the CFTRA would restrict cryptocurrency sales to local transactions while keeping them in line with international market developments. Licensed traders will have one month to join the exchange.

The project has been in the works since at least December 2021. In September 2022, Pang Hue Kai, CEO of Tokokrypto — one of 25 licensed crypto exchanges in Indonesia, with a large share owned by Binance — called the project “a catalyst for the Indonesian crypto ecosystem”.

The launch, planned for the end of 2022, was delayed to June 2023 due to the process of reviewing the potential participants of the exchange. At the time, the country’s Trade Minister Zulkifli Hasan announced that all active crypto exchanges with a national registration could join the exchange.

In 2022, the deputy minister of Indonesia’s Ministry of Trade, Jerry Sambuaga, suggested several policy changes in response to the “interesting year for the development of physical trading of crypto assets”. Among them was a requirement for two-thirds of directors and commissioners at crypto firms to be Indonesian citizens.

The country remains an attractive market for the crypto industry, as, according to CFTRA data, in 2021 roughly 4% of the country’s population, a little under 11 million people, had been investing in crypto.

Magazine: Tokenizing music royalties as NFTs could help the next Taylor Swift

Indonesia to launch crypto exchange in July: Report

July 14, 2023 Coin Telegraph

Coin Telegraph

Once launched, Indonesia’s national crypto exchange will be the only platform allowing crypto transactions, the local regulator said.

The government of Indonesia is moving forward with its plans to launch a national cryptocurrency exchange, and expects to debut the platform in the coming weeks.

Indonesia’s Commodity Futures Trading Supervisory Agency (CoFTRA), also known as Bappebti, is planning to launch the national crypto exchange in July 2023, the local news agency Tempo reported on July 14.

Bappebti head Didid Noordiatmoko reportedly said all cryptocurrency transactions will be only allowed to take plac using the upcoming national exchange.

“Yesterday we agreed on the stock exchange rules,” the official said, adding that the discussions involved regulation of Know Your Customer (KYC) processes. Didid also noted that trading on the exchange will be offered through an integrated application, which CoFTRA has already tested.

"Yesterday we conducted system integration tests between traders, exchanges, clearing, and depository," Didid said, according to the news agency.

The official also reportedly noted that Bappebti plans to restrict cryptocurrency sales to local transactions, but keep them in line with the international market developments. These would include the question of crypto prices, provided they are approved by Bappebti, the report notes.

The Bappebti also informed Trade Minister Zulkifli Hasan about the development. If there are no other instructions, Bappebti will sign the permit, which will give licensed traders one month to join the exchange, Didid reportedly stated.

As previously reported, Indonesia’s Ministry of Trade was aiming to launch the national cryptocurrency exchange in June 2023. The previous target was December 2022, but the project was delayed.

The initiative began 2021, when the owners of a state-backed telecom firm in Indonesia announced a joint venture with Binance to launch a joint cryptocurrency exchange. In late 2022, Binance increased its shareholding in the Indonesian crypto asset trader Tokocrypto.

‘Dealt with firmly’ — Bali governor issues warning to tourists using crypto

May 29, 2023 Coin Telegraph

bali

Cryptocurrency trading is legal in Indonesia, but the use of crypto in payments carries hefty penalties including jail time.

Bali’s government is cracking down on tourists paying for goods and services using cryptocurrency, with the island’s governor sending a reminder that Indonesia’s fiat currency is the only legal tender.

On May 28, the government-owned news agency Antara reported Bali’s governor Wayan Koster hosted a press conference the same day and said tourists who “use crypto as a means of payment [...] Will be dealt with firmly.”

"Strict actions range from deportation, administrative sanctions, criminal penalties, closure of business premises and other tough sanctions," he added.

The meeting was attended by Bali’s chief police inspector and Trisno Nugroho, the head of the Bali Representative Office for Bank Indonesia — the country’s central bank.

Nugroho reaffirmed that trading crypto is allowed but the use of crypto for payments is banned.

I dont understand why Koster keep saying stuff to scare away tourists from not allowing tourist to rent bikes, to only allow certain number of tourist, but so far zero implementation

I feel he tries his best to make sensational policues just because his term end this year
— Dea Rezkitha ( Bitcoin Conference 23 Bali ️) (@dearezkitha) May 29, 2023

Koster noted that Indonesia’s currency — the rupiah — is the only one that can be legally used for payments in the country. The use of other currencies carries a maximum potential sentence of one year in prison and an over $13,000 fine or 200 million rupiah.

The Bali governor's announcement comes days after a May 26 investigative report in Kompas, considered the country’s newspaper of record.

Kompas reportedly found multiple Bali-based businesses that accepted cryptocurrency payments including a meditation retreat, a motorbike rental business and a crypto-themed cafe.

According to data from Coinmap, a community-driven project that aims to map crypto-accepting businesses, there are 36 businesses that accept crypto, mostly concentrated in Ubud — a tourist hotspot town.

Despite the hardline stance from Bali’s governor and Indonesia, the country is on the path to rolling out a national crypto exchange by next month.

Indonesia’s Ministry of Trade would reportedly act as a custodian and clearing house for the local cryptocurrency markets. The platform was originally meant operational by the end of 2022, but suffered delays.

Magazine: Cryptocurrency trading addiction — What to look out for and how it is treated

Indonesia Introducing New National Payment System to Protect Against ‘Geopolitical Consequences’

May 17, 2023 Bitcoin.com

10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local Currencies

May 14, 2023 Bitcoin.com

Indonesia Is Following BRICS De-Dollarization Lead, Says Central Bank Governor

April 25, 2023 Bitcoin.com

Study claims 99.5% of crypto investors did not pay taxes in 2022

April 7, 2023 Coin Telegraph

Chartered Accountant

Finland and Australia had the highest proportion of tax-paying crypto investors, while the United States ranked 10th on the list, according to the study.

Swedish crypto tax firm Divly has released a new report that estimates that only 0.53% of crypto investors globally paid tax on their crypto in 2022 — however tax experts have cast doubt on the figures and methodology.

The Divly report published on April 5 came up with the estimate after analyzing the relationship between the number of people who declared cryptocurrency in their tax returns, and the search volume for crypto tax-related keywords in various countries. It also used the number of crypto holders in each country according to Statista's Global Cryptocurrency Report in its calculations

The report estimates that Finland has the highest proportion of crypto investors who paid the required taxes on crypto in 2022 at 4.09%, with Australia following closely behind on 3.65% respectively.

The United States ranked 10th on the list, with an estimated 1.62%, meanwhile, India, Indonesia and Philippines had the lowest rates of tax-paying crypto investors, with just 0.07%, 0.04% and 0.03% respectively.

The methodology used to arrive at the estimates is questionable. The report itself qualifies the results by noting that search volume data may not accurately reflect the actual number of crypto taxpayers, as not everyone who pays tax searches for crypto tax-related information online.

Another assumption in the methodology was that the number of searches related to crypto tax reporting did not vary across different countries. Additionally, it cautioned that there could be a potential bias towards countries with greater internet accessibility and more accurate search volume data.

Danny Talwar, global head of tax at crypto tax software Koinly, disputed the large portion of crypto investors not paying tax that the report suggests. He told Cointelegraph:

“It is likely that 99.5% is not reflective of countries that have specific crypto tax guidance and strict compliance requirements such as USA, Canada, Australia and India.”

Chartered Accountant Greg Valles, a board member of Blockchain Australia, also said he would not be able to “say conclusively that the methodology is 100 percent accurate.”

Both tax specialists noted government data matching and surveillance efforts meant it was getting progressively more difficult to avoid crypto taxes.

Valles said that as government technology gets more sophisticated and specialized, it will become easier to detect anyone that is not complying and warned that those who fail to report their crypto profits now, risk it catching up with them in future years.

Talwar emphasized that although the risk of non-compliance for crypto is comparatively higher than other asset classes, tax authorities in many countries have processes in place to obtain data from crypto exchanges.

He added that Koinly has seen awareness in crypto tax “increase considerably” amongst investors in these jurisdictions, with only “15% of surveyed crypto investors” being unaware of their crypto tax reporting duties.

Magazine: Best and worst countries for crypto taxes – plus crypto tax tips

India to Facilitate International Settlements in Rupees to Reduce Dependence on the US Dollar

April 3, 2023 Bitcoin.com

Indonesian government looks to NFTs to preserve cultural heritage

March 30, 2023 Coin Telegraph

Analysis

The Deputy of Indonesia’s Ministry of Tourism and Creative Economy explains how NFTs and cryptocurrency can help solve social and economic challenges within Indonesia.

One of the primary benefits of blockchain technology is the ability to record and capture information in a permanent, tamper-proof record. Once data is on a blockchain network, it cannot be altered, making it an ideal solution for record-keeping.

Tokenized assets, such as nonfungible tokens (NFTs), can also be placed on a blockchain. This can verify ownership while demonstrating that certain events occurred at particular times. For example, the Meta History Museum tokenized data from the war in Ukraine in May 2022, placing the information on a blockchain network to preserve records of the war.

Ensuring that specific events take place is also becoming more important than ever due to the rise of artificial intelligence (AI) and its ability to generate deep fakes, along with historical images that may appear realistic.

NFTs for preserving cultural heritage

Preserving information using decentralized technologies is gaining traction. For instance, Muhammad Neil El Himam, deputy chairman for digital economy and creative products in Indonesia’s Ministry of Tourism and Creative Economy, told Cointelegraph that he recently formed a partnership with Quantum Temple — a privacy company using NFTs for preservation — to help maintain the country’s cultural heritage. Himam explained that NFTs could ensure that heritage can be preserved and created without limits:

“I believe that NFTs can contribute to preserving Indonesia’s cultural heritage while enhancing virtual tourism. NFTs may also be a medium in ushering in the next billion users into the crypto space, especially if the NFT elements of the cultural heritage are well-known and appreciated.”

Linda Adami, CEO of Quantum Temple, told Cointelegraph that her firm developed a multichain NFT marketplace to bring cultural heritage and tourism to the Ethereum and Algorand blockchain networks. Adami explained that the platform is working closely with Indonesia’s Ministry of Tourism and Creative Economy to tokenize tangible and intangible cultural heritage as unique digital assets.

Recent: The secret of pitching to male VCs: Female crypto founders blast off

“Digital representations include traditional ceremonies, craftsmanship, and knowledge of nature and our universe, but also musical and oral expressions, dances and pilgrimages. By tokenizing cultural heritage, three critical areas of value are created: immutable archives of culture, transparent alternative income streams through royalties, verified provenance and recognition for cultural creators,” she stated.

On March 21, 2023, Quantum Temple launched its “Paths to Alangö” NFT collection at L’Atelier des Lumières in Paris, France, during Paris Blockchain Week. “The collection includes 11 unique NFTs that represent different aspects of Balinese cultural heritage, such as dances, temples, landscapes and philosophy. The NFTs are created by local artists and cultural heritage experts,” Adami said.

*NFT artwork displaying a Galungan celebration at Penglipuran Village in Bali, Indonesia. Source: Quantum Temple*

Adami said that technological innovations such as blockchain could play a significant role in addressing key challenges within a country’s cultural sector.

“Authenticity and quality are fundamental to cultural heritage’s tangible and intangible value. Blockchain can be used to create an immutable and invaluable record that recognizes authorship and guarantees the authenticity and provenance of creative assets,” Adami remarked.

Harry Halpin, CEO and co-founder of decentralized privacy platform Nym, told Cointelegraph that documenting things like cultural artifacts is becoming critical to prevent manipulation. According to Halpin, blockchain technology is one of the best ways to ensure this, noting that Nym has been working with the decentralized storage provider Filecoin to document war crimes on its blockchain network.

With this potential in mind, Himam believes that it is highly likely other regions will incorporate blockchain elements in the future. “Indonesia is just one example of many developing countries that have begun to explore the potential of these technologies,” he said.

Challenges remain

While tokenized digital assets could be a solution for preserving important information, regulatory and technical challenges may hamper adoption. For instance, while Himam is bullish on blockchain technology, he noted that regulatory uncertainty within the region might create friction.

Himam said that Indonesia’s Commodity Futures Trading Regulatory Agency controls how blockchain technology is applied domestically. “Crypto assets are categorized as a commodity that can be used as the subject of futures contracts traded on an exchange,” he said. However, he added that as Indonesia begins to implement more blockchain use cases, the government will start to establish clear regulations and policies on how decentralized technologies could be applied.

It’s also notable that Indonesia’s national crypto exchange is scheduled to be completed in June 2023. According to Himam, Indonesia is showing clear interest in cryptocurrency adoption. “The country has created regulations around cryptocurrencies and is encouraging their use,” he said.

Recent: Adoption and nerves — Crypto pumps amid banking crisis

However, Indonesia’s technical infrastructure could create challenges for projects using decentralized networks. Himam pointed out that blockchain-based technologies require specialized infrastructure, such as digital wallets, which may not be widely available in certain areas in Indonesia. This, coupled with the fact that most Web3 projects require skilled professionals, could result in slow regional innovation.

Despite the challenges, Quantum Temple’s Adami believes that Asian institutions may be the furthest along in understanding blockchain-based use cases. “The Indonesian Ministry of Tourism and Creative Economy leadership understands how NFTs could offer a new funding model for the cultural and creative sector while also protecting the intellectual property rights of artists,” she remarked.

Indonesia

NFTs for preserving cultural heritage

Challenges remain

Share this video