Fintech Market Overview

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Indonesia does not recognize cryptocurrencies as payment instruments, but they can be traded if approved by Bappebti. In order to qualify for trading, a cryptocurrency must meet several requirements, including: (1) being based on distributed ledger technology; (2) being a utility crypto or a crypto-backed asset; and (3) having had its associated risks evaluated, including the risk of money laundering and terrorism funding, as well as the proliferation of weapons of mass destruction. In addition, cryptoasset traders should have standard operating procedures covering, at a minimum, the following:

• Marketing and receipt of cryptoasset customers
• Transaction implementation
• Internal controls and supervision
• Dispute settlement for cryptoasset customers
• Implementation of anti-money laundering, terrorism financing and proliferation of weapons of mass destruction policies ¹

Trading mechanisms used by cryptoasset traders must also be evaluated for money laundering, terrorism funding, and proliferation of weapons of mass destruction risks.¹

Furthermore, cryptocurrencies will be subject to income tax, but any other tax treatment in relation to cryptocurrencies has yet to be regulated. It is uncertain whether tokens may be offered to Indonesian residents overseas.¹

Virtual currencies in Indonesia

Fintech in Indonesia

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/indonesia