Indonesia Floats New Rule Concerning Crypto Exchanges Leadership

As prosecutors continue to search for Terra co-founder Do Kwon, global regulators are also tightening their crypto-related policies and rules. To this end, Indonesia is looking to introduce a new rule that seeks to ensure  — as a requirement — that all domestic crypto exchanges are headed by citizens. This is according to a recent Bloomberg report.

Indonesia seeks to protect consumers at all cost

Per the report, the rule suggests that at least, two-thirds of directors and commissioners on crypto exchange platforms must be Indonesians. And in addition, they must be residents of the country. The new rule, which is still yet to be passed into law, was proposed during a parliamentary hearing in Jakarta.

According to the acting head of Indonesia’s trade ministry and commodity futures trading regulatory agency, Didid Noordiatmoko, the move is part of efforts to scrutinize the dealings of these platforms. It is also a move to ensure full accountability. He said:

“That way, at least we can stop them from fleeing the country if any problem arises.” 

At the moment, it is unclear how long it will take to amend the existing rules guiding Indonesian crypto exchanges. However, Noordiatmoko assures that the amendment will be done and issued at the appropriate time.

Considers additional adjustments

In addition to keeping a close eye on the leadership of its crypto exchanges, Indonesia is also considering making some extra adjustments to its regulations. According to Deputy Trade Minister Jerry Sambuaga, regulators want to gradually double the minimum capital requirement for exchanges to 100 billion rupiah. That’s approximately $6.7 million. However, this will be purely based on their growth. Sambuaga also says exchanges will be banned from staking activities and storing users’ funds or crypto assets in third-party accounts.

It is worth mentioning that the actions of Asian regulators might be in line with the ongoing investigation of Terra. They are turning up the heat following the alleged failure of Do Kwon to cooperate with prosecutors. In fact, prosecutors have requested that Interpol issues a red notice as they continue to track down the Terra co-founder.