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Crypto gateway Alchemy Pay scores license in Indonesia

Alchemy Pay has partnered with a local fintech in Indonesia to offer low-cost remittances for crypto users.

Alchemy Pay has obtained a license from the central bank of Indonesia to operate remittances and fund transfers in cooperation with local fintech firm Berkah Digital Pembayaran.

Announcing the news on Feb. 27, Alchemy Pay noted that Bank Indonesia issued the licenses jointly to Alchemy Pay and Berkah Digital’s platform BDPay, enabling the firms to offer better payout methods and reduce associated operating costs.

Fiat-to-crypto payment provider Alchemy Pay is expanding services in Asia by scoring new regulatory approval in Indonesia.

According to data from the official website of Bank Indonesia, Berkah Digital has been listed as a payment service provider under license category three. The firm is mainly known for its BDPay platform, which offers retail and corporate clients local and cross-border remittance services. The platform also provides client payroll services and transfers via bank application programming interfaces, allowing users to transfer to 136 banks in Indonesia.

Alchemy Pay’s cryptocurrency on-ramp supports payments via Mastercard, Visa, Google Pay, Apple Pay and a number of other regional mobile wallets like BDPay. The platform so far operates in 173 countries.

Related: Mastercard to allow crypto payments in Web3 via USDC settlements

Established in 2018 in Singapore, Alchemy Pay is a major global crypto-to-fiat payment platform known for partnerships with crypto giants like Binance exchange. The firm also operates its own utility token, Alchemy Pay (ACH), issued on the Ethereum blockchain. ACH is a major part of the Alchemy Pay network, providing transaction fees, network rewards and other processes.

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3AC Co-Founder Kyle Davies Fails to Respond to Liquidators’ Subpoena Despite Twitter Delivery

3AC Co-Founder Kyle Davies Fails to Respond to Liquidators’ Subpoena Despite Twitter DeliveryAccording to recent court filings, Kyle Davies, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has allegedly failed to respond to a subpoena from the firm’s current liquidators, despite it being sent via Twitter. Representatives from advisory company Teneo state that Davies continues to ignore his obligations to Three Arrows. 3AC Liquidators […]

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Indonesia to launch national crypto exchange in 2023: Report

The platform comes as a part of the plan to shift the regulatory oversight from the commodities agency to the securities authority.

As a part of its reform of crypto regulation, Indonesia will create a crypto exchange in 2023, according to reports. The platform is planned to be launched prior to a shift of regulatory power from commodities to securities authority. 

On Jan. 4, the head of the Commodity Futures Trading Regulatory Agency of Indonesia (Bappebti), Didid Noordiatmoko, stated that a crypto exchange should be set up this year. The move comes as a part of broader financial reform launched in December 2022.

In accordance with the reform, in the next two years, the crypto oversight will be taken from Bappebti, a commodities-focused agency, by the Financial Services Authority (FSA).

The Financial Sector Development and Reinforcement bill (P2SK) was ratified by the House of Representatives of Indonesia on Dec. 15 to become the primary legal reference in the financial service sector. Explaining the shift of authority from Bappebti to the FSA, cemented by the bill, Suminto Sastrosuwito, a head of Financing and Risk Management of the national finance ministry, claimed that:

“In fact, crypto assets have become investment and financial instruments, so they need to be regulated on an equal basis with other financial and investment instruments.”

Indonesia imposed a blanket ban on crypto payments starting in 2017, while trading in digital assets has largely remained legal in the country. In the first days of January, Noordiatmoko revealed that the value of crypto transactions in the country fell by half in 2022 — from 859.4 trillion Indonesian rupiahs ($55 million) to 296.66 trillion ($19 million). 

Related: Majority of crypto exchange leadership should be comprised of citizens, say Indonesian regulators

In December, Bank of Indonesia Governor Perry Warjiyo announced the release of the conceptual design of a digital rupiah — a currency the equivalent of the country’s fiat — which will be made available for public discussion.

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Binance acquires 100% of Indonesian Tokocrypto after initial investment in 2020

This is the third licensed Asian cryptocurrency exchange Binance has bought this year as it expands its global reach; the company had shown signs of struggling.

Binance has acquired Indonesian crypto asset trader Tokocrypto, according to local reports on Dec. 19. The purchase was confirmed in a tweet by Binance CEO Changpeng Zhao (CZ), who characterized the deal as having “just injected more cash and increased our shareholding a bit.” Changes are expected at the exchange.

Tokocrypto founder Pang Xue Kai will reportedly step down as CEO, to be replaced by Yudhono Rawis as interim chief. Pang Xue Kai will remain on the company’s board of commissioners.

CNBC quotes Pang Xue Kai as saying:

"This decision was made after careful consideration and we decided that the best step for Tokocrypto going forward is to leverage Binance's capabilities to build a further physical trading platform for crypto assets."

Reports emerged on Dec. 6 that Binance was in talks with Tokocrypto, driving the value of its TKO coin up 50%. It was also reported at the time that a round of layoffs would occur if the buyout went through. Tokocrypto laid off 45 people, or 20% of its staff, in September. It also spun off its community space T-Hub and nonfungible token marketplace TokoMall at that time.

Binance first invested in the Indonesian company in 2020. In 2021, Tokocrypto was reportedly considering an initial public offering, although the offering never took place. 

Tokocrypto was founded in 2018 and became Indonesia’s first crypto exchange to receive approval from the country’s Commodity Futures Trading Regulatory Agency (Bappebti) the following year. That agency’s approval has since become mandatory for crypto exchanges. Seventeen companies had received Bappebti approval by March of this year.

Related: Celebrity tokens: Signs of rising crypto adoption in Indonesia

Binance acquired Sakura, a licensed Japanese crypto exchange, in November and MX Global, a licensed Malaysian exchange, in March. By buying companies that are already licensed, Binance can operate without having to obtain a license itself.

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Central bank plans to make CBDC ‘only legal digital tender’ in Indonesia, says gov

“Collaboration and synergy on national and international level is critical to the development of Digital Rupiah,” said Perry Warjiyo.

Bank of Indonesia governor Perry Warjiyo has announced developments in its plans to launch a central bank digital currency, or CBDC, for “various digital economic and financial transactions.”

In a Dec. 5 speech at the central bank’s annual meeting, Warjiyo said the bank planned to release details on the conceptual design of a digital rupiah — a currency the equivalent of the country’s fiat — and open the matter to public comment. According to the governor, the Bank of Indonesia intended for the digital rupiah to be “integrated, interconnected, and interoperable” with other country’s CBDCs following discussions with central bank officials.

The CBDC initiative, called Project Garuda, will start with the launch of a wholesale digital rupiah for “use cases of issuance, redemption, and interbank fund transfer” followed by “monetary operations and financial market development.” The project’s white paper stated the third phase will deal with end-to-end transactions between wholesale and retail digital rupiah users.

“Collaboration and synergy on national and international level is critical to the development of Digital Rupiah,” said Warjiyo.

Digital rupiah roadmap. Source: Bank of Indonesia

Related: Indonesia’s cryptocurrency community in 2022: An overview

Indonesia imposed a blanket ban on crypto payments starting in 2017, while trading in digital assets largely remained legal in the country as regulated under the Commodity Futures Trading Regulatory Agency. Warjiyo first announced plans for Indonesia to introduce a CBDC in May 2021 but did not provide a specific timeline on the digital currency’s release.

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Regulator Halts Trading of FTX Tokens in Indonesia

Regulator Halts Trading of FTX Tokens in IndonesiaThe agency overseeing Indonesia’s crypto market has stopped the trading of FTX tokens on domestic platforms. The announcement comes after FTX, the exchange that issued the FTT token, filed for bankruptcy in the United States and was subjected to investigations by regulatory bodies around the world. Indonesian Authority Orders Crypto Exchanges to Discontinue FTX Token […]

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How to build a Bitcoin Beach: Advice from the pros

Founders of Bitcoin Beach El Salavdor, Bitcoin Ekasi in South africa, Dakar Bitcoin Days in Senegal and Global Bitcoin Fest shed light on building Bitcoin communities around the world.

How does one build a Bitcoin (BTC) community? How to start? Where to begin? And what are the best practices? 

Cointelegraph spoke to Bitcoin community builders around the world to shed light on a growing phenomenon in the Bitcoin world.

From Indonesia to South Africa to El Salvador and the Congo, circular-based Bitcoin economies and community projects have sprung up across the globe. Cointelegraph asked the successful community-focused Bitcoiners how to kickstart a Bitcoin circular economy and what advice they’d lend to enthusiasts looking to replicate the success of projects like Bitcoin Beach, El Zonte.

Using Bitcoin at Bitcoin Beach. Source: Twitter

For Bitcoin community project leader Mike Peterson, it starts with Lightning. Peterson pioneered the Bitcoin Beach project in the sleepy surf town of El Zonte, El Salvador. The circular economy energized an entire nation and eventually led to El Salvador adopting Bitcoin as legal tender in 2021. Peterson told Cointelegraph:

“You need to be using lightning for for people to be transacting and to build a circular economy. It really needs to be built on lightning. [..] You need to get people transacting.”

The layer-2 Lightning Network is a payments solution built on top of Bitcoin. In El Salvador, El Chivo is among the most popular Lightning-enabled Bitcoin wallets, although it has experienced issues since its rollout. Across the rest of the world, Bitcoin enthusiasts use Wallet of Satoshi, Muun Wallet, CoinCorner or Blue Wallet to instantly transact with one another. Peterson continued: 

“If you get them making that first transaction and they see how easy it is and that they’ve actually sent value from one person to another in like a second time for hardly almost no fees, that’s what the light bulb goes off and they realize the value that that has.”

Ultimately, leading with Lightning helps newbies realize that Bitcoin can be easy and even fun. In the Isle of Man, where there is a budding Bitcoin community, United Kingdom-based exchange CoinCorner has found inventive ways to demonstrate the Lightning Network.

Bitcoin Ekasi Project next to Mossel Bay, South Africa. Source: Twitter

Hermann Vivier, founder of Bitcoin Ekasi in the Western Cape of South Africa, shared a few tricks to establishing a Bitcoin economy. First, while it’s important to “put one foot in front of the other,” and “just start,” he said, try to see if there’s a preexisting community to tap into:

“We had something that that was already existing and we built the Bitcoin community on top of that.”

Bitcoin Ekasi is a township project that keeps kids away from gangs in school and among South Africa’s Atlantic waves, where they learn lifeguarding and surf skills. Vivier teaches Bitcoin as another element of the kids’ education.

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Furthermore, Vivier also shared that it’s important to keep it simple. Stick to Bitcoin, he joked. His hours of labor and love given to this community project have turned him into a “Bitcoin maximalist,” as it helps in avoiding the risk of scams in crypto, while blockchain buzzwords can get in the way of making progress:

“I would say 100% focus on Bitcoin only. And if there was something better than Bitcoin out there, then that's what you should focus on. But at the moment Bitcoin is where it’s at.”

Nourou, founder of Bitcoin Senegal, a community-led Bitcoin project in West Africa, told Cointelegraph, “You cannot create a community if you aren’t capable of answering people’s questions–and that requires a wide range of knowledge.”

Iman Yudha, who leads a group of crypto and Bitcoin enthusiasts in Indonesia, agrees. He told Cointelegraph that it’s important to “Get educated first–before you make any decisions. That's my personal opinion.”

After establishing a solid basis of foundational knowledge about Bitcoin, crypto and security. Nourou recommends to start talking about Bitcoin with close relations:

“Start with the family if you can't convince your mother, your brother, your sister, the cousins, and so on, it’s a bad start.” 

He notes that the following step varies depending on the culture, business practice and environment. Over in Senegal, “it is the wealthiest who roughly define fashion, who define trends. So people tend to copy them.” It’s for that reason that Nourou tried to target his Bitcoin communication to those communities first. Incidentally, Nourou is hosting West Africa’s first major Bitcoin conference, Dakar Bitcoin Days, on Dec. 2 in West Africa’s largest theater.

Cointelegraph attended Dakar, Senegal's first ever Bitcoin meetup in 2022.

Lukas, a co-founder of Global Bitcoin Fest — which holds marathon Twitter Spaces for people all around the world — again encourages Bitcoin enthusiasts to focus on the people. It can be “lonely” in the land of Bitcoin, he told Cointelegraph, so finding a team with shared values can spur things along. He shared an example:

“It’s a conversation that I've had recently with two guys in Zimbabwe. They want to kickstart a [project] there. He wanted to do it, but he was alone. [...] Then he found Metamorphoses, another great maxi, and now they're forming a team — and the energy is completely different now.” 

Yudha chimed in, sharing that energy and enthusiasm are critical, and community builders should avoid being “toxic” where possible. 

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In short, these Bitcoin pioneers suggest finding like-minded individuals to work with, starting small, taking advantage of existing communities, knowing and understanding the subject matter and not overstretching. The simplest way to do this is to focus on Bitcoin and Bitcoin only. And to get people interested and transacting, get people using the Lightning Network because that’s what gives people their own light bulb moment.

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Indonesia to Change Crypto Regulators as Part of Plan for Stricter Oversight

Indonesia to Change Crypto Regulators as Part of Plan for Stricter OversightThe government of Indonesia wants to assign crypto supervision to the Asian nation’s financial watchdog in order to ensure better protection for investors. The move is part of a planned overhaul of regulations in the sector aimed at increasing oversight of the expanding digital assets market. Indonesia Mulls Over New Financial Legislation Designed to Tighten […]

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Indonesia to Tighten Crypto Regulation With Stricter Rules for Exchanges

Indonesia to Tighten Crypto Regulation With Stricter Rules for ExchangesIndonesia is preparing to issue new rules to tighten the regulation of crypto exchanges. Under revised regulatory framework, two-thirds of crypto exchange directors must be Indonesian citizens residing in the country. Indonesia Plans to Tighten Crypto Regulation Indonesia is preparing to issue new rules to tighten the regulation of crypto exchanges, officials from the country’s […]

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Majority of crypto exchange leadership should be comprised of citizens, say Indonesian regulators

Officials with Indonesia’s Commodity Futures Trading Regulatory Agency could implement a rule for two-thirds of directors and commissioners at crypto firms to be citizens.

Jerry Sambuaga, the deputy minister of Indonesia’s Ministry of Trade, has proposed a rule that would require the leadership at the country’s crypto exchanges to be more representative of its citizens. 

In a Tuesday parliamentary meeting that included 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 for two-thirds of directors and commissioners at crypto firms to be “Indonesian citizens and domiciled in Indonesia.”

Proposed changes to Indonesia’s Commodity Futures Trading Regulatory Agency on crypto. Source: YouTube

A Wednesday report from Bloomberg suggested that the proposed changes to the country’s crypto 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 a warrant for his arrest and Interpol reportedly placing Kwon on its Red Notice list.

According to the report, Indonesia’s Commodity Futures Trading Regulatory Agency acting head Didid Noordiatmoko said the rule aimed to stop leadership at crypto firms “from fleeing the country if any problem arises.” In addition to the citizen rule, Sambuaga proposed crypto firms have a minimum capital requirement of 100 billion rupiah — roughly $6.7 million at the time of publication — and user funds be stored in third-party financial institutions or futures clearing houses.

Related: Indonesia plans to set up its crypto bourse by the end of 2022

With a population of more than 275 million people, roughly 11 million in Indonesia invested in crypto in 2021, according to Sambuaga. The country’s Commodity Futures Trading Regulatory Agency showed there were 25 registered crypto exchanges as of April 2022, including local branches of Zipmex and Upbit.

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