Indonesia’s cryptocurrency market has experienced extraordinary growth in 2024, with transaction volumes reaching USD 30 billion by October, a 352 percent increase compared to USD 6.5 billion in the same period last year, according to reporting from DeFi Planet.
A November 28 report from local news outlet Investor ID quoting data released by the country’s financial regulator, the Commodity Futures Trading Supervisory Agency (Bappebti), highlighted that this year’s transaction volume has already surpassed the combined totals of 2022 (USD 19.4 billion) and 2023 (USD 6.5 billion). However, the market still fell short of the USD 54 billion target, a figure last seen during the 2021 cryptocurrency bull run, says DeFi Planet.
The number of cryptocurrency traders in Indonesia has also increased to 21 million, with 716,000 users actively trading on locally registered exchanges. This positions the country as one of the largest globally in terms of crypto adoption.
“This proves that crypto asset trading is one of the trading options in demand by the public,” Kasan, head of Bappebti, reportedly stated.
DeFi Planet says Indonesia recently climbed to third place on Chainalysis’ global crypto adoption index, overtaking Vietnam. The country now trails only India and Nigeria, which has held the top position since 2023. The report attributed the global rise in crypto adoption to increased activity across income levels, despite slowing activity in high-income nations.
Younger Indonesians are fueling this growth. Another local news outlet, Kompas reported that 26.9 percent of crypto investors were aged 18 to 24, and 35.1 percent were between 25 to 30 as of September 2024. Kasan noted that Gen Z and Millennials are drawn to cryptocurrency as an alternative to traditional investments like stocks and gold.
Meanwhile, amid this growth, Bappebti has enforced stricter regulations. Exchanges in the country have been asked to secure the “Physical Crypto Asset Traders license” by late November 2024. The extension granted to “Prospective Crypto Asset Physical Traders” for meeting compliance standards has been widely praised, including by Oscar Darmawan, CEO of INDODAX, for ensuring alignment with regulatory standards, says DeFi Planet.
Bappebti has set a late November 2024 deadline for crypto exchanges to secure the “Physical Crypto Asset Traders license.” Exchanges listed as Prospective Crypto Asset Physical Traders received an extension to meet compliance requirements, a decision praised by INDODAX CEO Oscar Darmawan for supporting regulatory alignment.
Source: DeFi Planet
Stock photo by Alesia Kozik On Pexels
