The Indonesian government is set to launch a cryptocurrency exchange in 2023 as part of its financial reform efforts, Bloomberg reports.

This announcement follows the ratification of the Financial Sector Development and Reinforcement bill (P2SK) by the House of Representatives, which seeks to establish itself as the primary legal reference in the financial service sector.

It is worth noting that while cryptocurrency is not considered legal tender in Indonesia, it can be traded in the commodity futures market for investment purposes. Data from Bappebti reveals that the value of cryptocurrency transactions in Indonesia fell by half in 2022, from IDR 859.4 trillion ($55 million) to IDR 296.66 trillion ($19 million).

The exchange will be established prior to a shift in regulatory oversight from the Commodity Futures Trading Regulatory Agency of Indonesia (Bappebti) to the Financial Services Authority (FSA).

The exchange is expected to provide greater clarity and regulation in the sector, although its impact on the use and adoption of cryptocurrencies in Indonesia remains to be seen. The country also has plans to roll out a digital rupiah, which can be used to make purchases in the metaverse.