Indonesia Wants Citizens to Steer Local Crypto Exchanges: Report

Regulators in Indonesia are introducing a new rule requiring domestic cryptocurrency exchanges to be mostly led by its citizens, according to a Bloomberg report.

• The rule would require at least two-thirds of directors and commissioners on crypto trading platforms to be Indonesians residing in the country, officials from the country's trade ministry and commodity futures trading regulatory agency said at a parliamentary hearing in Jakarta.
• “That way, at least we can stop them from fleeing the country if any problem arises,” Didid Noordiatmoko, the agency’s acting head , said, according to the report.
• Noordiatmoko didn’t say when the revised regulation would be issued, but said revisions will be made to Indonesia's existing guidelines for operating crypto exchanges.
• The regulator's comments follow an effort by South Korea to hunt down Terra co-founder Do Kwon. The country had issued an arrest warrant for Kwon on charges of fraud, four months after Kwon's $40 billion Terra network collapsed.
• Additional revisions to the rules in Indonesia include gradually doubling the minimum capital requirement for crypto exchanges to 100 billion rupiah ($6.7 million) in line with their growth, banning exchanges from reinvesting crypto assets and storing users' money in third-party bank accounts, according to Deputy Trade Minister Jerry Sambuaga.

Read More: Indonesia to Establish ‘Crypto Stock’ Exchange by 2022-End: Report