Economist urges government to tighten crypto asset regulations

The Institute for Development of Economics and FinanceIndef() urges the government to tighten regulation of on crypto assets this is a fact. This is because the unregulated growth of crypto assets can disrupt the economy.

Iman Sugema, Senior Economist at Indef, stated that the Commodity Futures Trading Supervisory Agency’s (CoFTRA), regulations are still accommodative and not strict.

He said that “This should be our biggest concern (policymakers) to immediately implement stricter rules concerning cryptocurrencies (cryptocurrency), such as bitcoin, and its friends” in a discussion called Plus-Minus Crypto Asset Investment on Thursday (26/4).

He stated that crypto assets are speculative and therefore can have very sharp fluctuations. This is different than investing in the real sector, which is more valuable and isn’t speculative.

Economist urges government to tighten crypto asset regulationsEconomist urges government to tighten crypto asset regulations

He stated that “Cryptocurrency does not have anything to do with creating added value.”

He encouraged the government to look at a variety of countries that have adopted strict rules for crypto money. One of these was China. It is well-known that President Xi Jinping is extremely strict about crypto trading. He has banned transactions using cryptocurrencies and prohibited cryptocurrency mining.

“This Chinese government step needs to be carefully studied. It doesn’t mean that we are copying it. But we want to present whatever happens in crypto assets. It should be designed for profits for the country and the public good. He said that the speculation aspect would then be lessened.

Researcher Center of Innovation and Digital Economy Indef Nurkomaria also encouraged the government’s immediate creation of a cryptocurrency asset trading exchange. Legalizing it will make it easier for regulators to monitor and take action.

He stated that the government should speed up the creation of crypto exchanges to allow crypto money to trade.

He also encouraged Bank Indonesia (BI), and the Financial Services Authority OJK to offer protection to users. He also believes that the Bill on Personal Data Protection must be ratified faster to protect consumers. OJK and BI should also tighten rules regarding money laundering and the prevention of terrorism funding.

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He stated, “Given the widespread suspicion that this crypto asset was money laundering then financing terrorism,”

CoFTRA had previously targeted Indonesia to establish a futures market for crypto assets by the year’s end. Indrasari Wisnu, Head of CoFTRA said that the crypto exchange was designed to meet the growing interest of Indonesian investors in crypto assets.

He said that the exchange was in progress, and CoFTRA’s target by 2021 is for an exchange to be operational.

After the foam has been formed, additional support facilities like a clearing system or single investor identification number (SID), will be available.