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According to data from the country’s crypto regulator, Indonesia faced a significant increase with the number of cryptocurrency investors reaching 19 million in February. The Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) attributes this growth to the notable rise in Bitcoin‘s (BTC) price and the surge in altcoins, fueled by positive market sentiment.
Trading Volume Reaches $1.92 Billion
The increase in cryptocurrency trading volume in Indonesia was equally remarkable, reaching 30 trillion Indonesian rupiah ($1.92 billion) in February alone, reported by Bappebti. This surge reflects the growing participation of investors in the crypto market, driven by optimism surrounding Bitcoin and altcoins.
With the number of registered cryptocurrency investors reaching 19 million in February, marking an increase of 170,000 users from January, Bappebti highlighted significant growth in Indonesia’s crypto market. The regulatory body pointed to the rise in Bitcoin’s price and the positive market sentiments stemming from the surge in altcoins as the main factors driving this growth.
Looking forward, Bappebti aims to match or exceed the $51.28 billion trading volume recorded during the last bull run in 2021. Tirta Karma Senjaya from Bappebti emphasized the anticipated recovery in 2024, noting the upcoming Bitcoin block reward halving as a potential catalyst for market growth.
Changes Expected in the Tax System for Crypto Transactions
To achieve its trading volume target, Bappebti considers removing or reducing taxes on crypto transactions as a suitable strategy. Currently, various taxes are levied on crypto transactions in the country, including a 0.10% income tax and a 0.11% VAT, as well as a 0.02% tax per transaction for cryptocurrency exchanges.
Senjaya stressed the importance of fostering a favorable environment for the crypto industry, noting that heavy taxes could hinder the sector’s growth, especially in its early development stages. Accordingly, significant changes are expected, including the transfer of crypto oversight to the Financial Services Authority (OJK) in January 2025, reclassification of cryptocurrencies as securities, and revisions in VAT policies.
