The Indonesian cryptocurrency market is experiencing unprecedented growth, with transaction values soaring to $1.92 billion in February. At the same time, the number of registered cryptocurrency investors in the country has risen to 19 million, reflecting a significant monthly increase.
Positive Market Sentiments Driving the Market Upward
This growth can be attributed to the Indonesian cryptocurrency regulator, who attributes positive market sentiments to the recent surge in Bitcoin and altcoin prices. Data from the Indonesian cryptocurrency regulator shows that the volume of crypto transactions in February reached 30 trillion Indonesian rupiahs.
Expectations of Further Growth in the Coming Years
The regulator is now focused on achieving or surpassing the record transaction volume from 2021 when the volume reached $51.28 billion during the last bull market, no later than by 2024. A key moment for market revival is expected to be the upcoming halving of Bitcoin mining rewards, which is considered a significant market catalyst.
Easing Tax Burden as a Path to Growth
One of the proposed strategies to stimulate the market is to reduce or eliminate taxes on cryptocurrencies. Current rates include an income tax of 0.10% and a VAT of 0.11% for users and exchanges, while transactions on crypto exchanges are subject to a 0.02% transaction tax. According to Tirta Karma Senjaya from Bappebti, this move could revitalize a sector that is still in the early stages of development.
Future Regulatory Oversight Shifts and Potential Changes
The planned shift of cryptocurrency oversight to the Financial Services Authority (OJK) in January 2025 could bring significant changes, including the potential reclassification of cryptocurrencies as securities and a revision of tax rules. This move could have a significant impact on the regulation and support of the cryptocurrency market in Indonesia.
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