Majority of crypto exchange leadership should be comprised of citizens, say Indonesian regulators

Jerry Sambuaga, the deputy minister of Indonesia’s Ministry of Trade, has proposed a rule that would require the leadership of the country’s crypto exchanges to be more representative of its citizens.

At a parliamentary meeting on Tuesday that included Indonesian regulatory officials, a letter presented by Sambuaga suggested several policy changes in response to the “interesting year for the development of physical trading of crypto assets” in the country. Among the proposed rules is a requirement that two-thirds of crypto companies’ directors and commissioners be “Indonesian citizens and domiciled in Indonesia.”

Proposed changes to Indonesia’s Crypto Commodity Futures Trading Regulatory Agency. Source: YouTube

A Wednesday report by Bloomberg suggested that proposed changes to the country’s crypto policy may have been influenced by the legal battle involving Terra co-founder Do Kwon. The South Korean national left the country for Singapore in April and his current whereabouts are unknown at the time of publication, although officials have issued an arrest warrant and Interpol is said to have ·place Kwon on your red alert list.

According to the report, the acting head of Indonesia’s Commodity Futures Trading Regulatory Agency, Didid Noordiatmoko, said the rule was aimed at preventing the leadership of crypto companies “from fleeing the country if it arises any problem”. In addition to the citizen rule, Sambuaga proposed that crypto companies have a minimum capital requirement of 100 billion rupiah (roughly $6.7 million at press time) and that user funds be stored in third party financial institutions or futures clearing houses.

Related: Indonesia plans to establish its crypto exchange by the end of 2022

With a population of more than 275 million people, approximately 11 million in Indonesia invested in crypto in 2021, according to Sambuaga. The country’s Commodity Futures Trading Regulatory Agency showed there were 25 registered crypto exchanges as of April 2022, including local branches of Zipmex and Upbit.