The crypto market appears to be slowing globally, but in Indonesia it is experiencing interesting growth in the value of digital asset trading transactions. Data from the Ministry of Trade shows that in August 2023, the value of crypto asset transactions increased by 13.5 percent compared to the previous month, reaching a total of IDR 10.64 trillion.

During the first eight months of 2023, the total crypto transactions recorded by the Commodity Futures Trading Supervisory Agency (Bappebti) have reached IDR 86.45 trillion.

Meanwhile, in the same period the previous year, total crypto transactions in Indonesia still reached IDR 249.3 trillion. This indicates a sharp decline in transactions of 65.32 percent on an annual basis.

High Public Interest

On the other hand, public interest in crypto asset trading remains strong. According to data from the Ministry of Trade as of August 2023, the number of registered crypto customers reached 17,789,974 people.

This number continues to increase, with the addition of 119,410 customers in the past month, showing an increase in the number of customers by 466,382 every month.

Commenting on this, Tokocrypto CEO, Yudhono Rawis, emphasized that public interest remains high even though there has been a decline in transaction values in recent years. This shows that people still have strong confidence in the future of crypto assets.

“Even though the value of crypto transactions in Indonesia is experiencing fluctuations, public interest in crypto assets continues to grow. There are several strong reasons behind this interest. First, crypto is an attractive investment alternative,” said Yudhono in a press release, quoted Saturday (23/9/ 2023).

Yudhono added that uncertain economic conditions have made many people look for more stable investment opportunities, and crypto assets have proven to be an attractive option.

The push to develop crypto assets is in line with data from the Center of Economic and Law Studies (CELIOS). According to CELIOS, one of the three main investment products owned by Indonesian people is crypto assets, with a proportion reaching 21.1 percent.

Crypto Regulations in Indonesia Are Getting Clearer

Apart from that, Yudho also acknowledged the important role of increasingly clear regulations in supporting the growth of the crypto market in Indonesia.

“Clearer and more structured regulations help create a safer and more trustworthy trading environment. This gives people confidence to invest and transact with crypto assets without much doubt,” he added.

With increasing interest and support from increasingly better regulations, the crypto asset market in Indonesia still has significant growth potential in the future. Yudho hopes that this industry will continue to develop and provide benefits to society and the Indonesian economy as a whole.

Previously, South Korean investors and companies had cryptocurrency worth more than USD 97.9 billion or the equivalent of IDR 1,508 trillion (assuming an exchange rate of IDR 15,408 per US dollar) in overseas accounts. This is according to the latest South Korean National Tax Service report.

This figure represents 70 percent of the total financial assets reported to be owned by South Korean citizens abroad. In the annual assessment of monthly tax filings carried out from January to June 2023.

South Korea’s National Tax Service found that 1,432 retail investors and companies had foreign crypto assets worth nearly USD 100 billion or the equivalent of IDR 1,540 trillion.

South Korean residents and companies that have overseas assets worth more than USD 372,939 or the equivalent of IDR 5.7 billion are required to report these assets to the tax authorities. 2023 marks the first year that the South Korean tax authority includes crypto in its annual assessments.

“This year there was a record number of filers and the number of foreign virtual asset accounts included for the first time,” wrote the National Tax Service in a press release, quoted from Yahoo Finance, Sunday (24/9/2023).

The press release said authorities will use cross-border transaction data to identify anyone who avoids reporting their overseas asset holdings. The government will also strictly enforce penalties including criminal prosecution for those found guilty, he said.

In 2021, South Korea effectively banned foreign cryptocurrency exchanges from operating in the country. However, South Korean residents can still trade cryptocurrencies through overseas exchanges.