Indonesia’s crypto market experienced a notable surge in February, with transactions hitting IDR 30 trillion ($1.92 billion) and registered investors reaching 19 million, as reported by the country’s regulatory body, Bappebti.
This growth is attributed to the optimistic market sentiment driven by Bitcoin’s price surge and the rally in alternative tokens.
Bappebti aims to surpass the transaction volume of the 2021 bull run by 2024, which peaked at $51.28 billion. Tirta Karma Senjaya of Bappebti noted the expected rebound in 2024, with the upcoming Bitcoin halving being pivotal.
To achieve the transaction targets, Bappebti suggests revising the current tax structure, which imposes a 0.10% Income Tax and 0.11% VAT on users, and a 0.02% tax on exchanges per transaction. Tirta emphasized the potential detriment of heavy taxes on the nascent crypto industry, speaking at a Reku exchange event.
Furthermore, the impending transfer of crypto oversight to the Financial Services Authority (OJK) in January 2025 could lead to significant regulatory changes, potentially classifying crypto as securities and reassessing VAT policies.
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