The government of Indonesia is making significant progress towards the launch of its national cryptocurrency exchange, which is expected to debut in the coming weeks.

The country’s Commodity Futures Trading Supervisory Agency (CFTRA), commonly known as Bappebti, has announced its plans to launch the exchange in July 2023, according to a recent report by local news agency Tempo.

Bappebti head, Didid Noordiatmoko, revealed that all cryptocurrency transactions in Indonesia will only be allowed to take place using the national exchange.

The agency has finalized discussions on stock exchange rules, including the implementation of robust Know Your Customer (KYC) procedures.

The exchange will provide an integrated application for seamless trading, and the CFTRA has already conducted successful system integration tests between traders, exchanges, clearing, and depository services.

Bappebti intends to limit cryptocurrency sales to local transactions while ensuring alignment with international market developments.

The agency will also oversee the regulation of crypto prices, subject to approval. By striking a balance between local operations and global trends, the national cryptocurrency exchange aims to provide a secure and regulated environment for traders and investors.

Trade Minister Zulkifli Hasan has been briefed on the progress, and Bappebti is prepared to sign the permit for the exchange launch.

Licensed traders will have one month to join the platform once the permit is issued, unless other instructions are received.

The initiative to establish a national cryptocurrency exchange in Indonesia began in 2021 when a state-backed telecom firm joined forces with Binance, a leading global cryptocurrency exchange.

Together, they announced plans for a joint venture. Later, in late 2022, Binance increased its shareholding in the Indonesian crypto asset trader, Tokocrypto, further solidifying their partnership.