The Indonesian crypto market has just marked an important milestone, with total transaction value exceeding 475 trillion Indonesian rupiah (equivalent to about 30 billion USD) as of October 2024.
This figure represents an impressive 352% increase over the $6.5 billion in transactions in the same period last year.
Indonesia Asserts Its Leadership in Global Crypto Adoption
According to a report from the Commodity Futures Trading Regulatory Authority (CoFTRA), crypto trading volume in 2024 has surpassed the $19.4 billion mark recorded in 2022, marking a strong expansion of the market.
However, the trading value is still below the historical peak of about 54 billion USD in 2021, when the market was driven by a strong bull run.
This growth is accompanied by an increasing number of crypto traders. Indonesia currently has about 21 million traders, but only 716,000 are trading on licensed domestic exchanges, making it one of the largest crypto markets in the world by the number of investors. Vietnam ranks fifth in terms of global investor numbers, but the report does not specify how many users there are.
Source: Chainalysis
The latest report also reinforces Indonesia's position in the Global Crypto Adoption Index published by Chainalysis, affirming that the country is one of the pioneers in crypto adoption, alongside India, Nigeria, the US, and Vietnam.
The young investor force drives the crypto boom, with 60% belonging to the age group of 18-30.
The crypto market in Indonesia faced many challenges after the boom period in 2021, especially when the government implemented a 'double tax' policy in 2022. This policy includes a 0.1% tax on profits from crypto, along with standard income tax, resulting in a significant decline in trading activity.
However, recent data shows a strong recovery, with the total transaction value in 2024 surpassing the combined total of the previous two years.
This recovery has brought Indonesia to the third position on Chainalysis' Global Crypto Adoption Index, while continuing to lead the Asia-Pacific region. Among the top 10 countries, 7 countries are in this region, with Indonesia only behind India and Nigeria in terms of crypto adoption.
Recent policy reforms, such as the easing of restrictions on institutional investment through CoFTRA Regulation No. 9/2024, are believed to have contributed to the market's recovery, especially during the cryptocurrency price increase in September.
Additionally, there have been calls for the government to reconsider the 'double tax' policy in the context of large-scale policy reforms being implemented after President Prabowo Subianto took office in October.
According to data from Bappebti, the majority of crypto investors in Indonesia are young people, with over 60% aged between 18-30. In September 2024 alone, the total value of crypto transactions in the country reached 2.1 billion USD.
This strong development helps Indonesia maintain its position in the top 20 countries with the fastest crypto adoption rates globally for the past three years.
The most popular crypto assets include Bitcoin, Ethereum, USDT, and Solana, reflecting global trends as millennials and Gen Z increasingly dominate crypto investment.
Source: https://tapchibitcoin.io/giao-dich-crypto-tai-indonesia-nam-2024-vuot-30-ty-usd.html