Indonesia Seeks To Limit Foreign Ownership Of Crypto Exchanges
Indonesia will seek to limit foreign ownership of crypto exchanges by introducing a new rule requiring 66% of board members and directors of companies to be citizens residing in the country. The Ministry's Commodity Futures Regulatory Agency (Bappetbi) is expected to issue a new regulation soon. This was reported on Tuesday by Reuters, citing deputy trade minister Jerry SAMBUAGA.
Sambuaga told reporters after parliamentary hearings that the ministry did not want to carelessly hand out permits to exchanges. The ministry will issue them to platforms that the ministry considers credible after meeting the necessary requirements. The agency will also oblige exchanges to use a third party to hold client funds, while prohibiting markets from reinvesting the stored assets.
This is because the industry has been hit by several major project collapses, including Do Kwon’s Terra ecosystem and Marcus Lim’s Zipmex exchange, which has gained a foothold in the country and is struggling to stay afloat through outside investment. Didid Noordiatmoko, acting head of the agency, told a parliamentary hearing on Tuesday that its new ruling could prevent the exchange's top managers from fleeing the country if problems arise.
Image: Somag News