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Indonesia's Crypto Market Sees Explosive Growth with $1.92 Billion in Transactions for February

Indonesia experiences significant growth in crypto market

Indonesia's crypto market witnessed remarkable growth in February, with transactions reaching an impressive Indonesian Rupiah 30 trillion ($1.92 billion). This surge is mirrored by the country's increasing interest in cryptocurrency, evidenced by the rise in registered crypto investors to 19 million, an increase of 170,000 users from January. The Commodity Futures Trading Supervisory Agency (Bappebti) credits this expansion to positive market sentiments, propelled by the price surge of Bitcoin (BTC) and the rally in altcoins.

Bappebti reported, highlighting the growing enthusiasm towards cryptocurrency in Indonesia:

 "The number of crypto investors surged to 19 million in February," 

This upward trajectory reflects a broader optimism in the crypto sector, underpinned by the anticipation of further growth and market engagement.

Regulatory insights and the future of crypto in Indonesia

The regulatory environment plays a crucial role in shaping Indonesia's crypto market. Bappebti's Tirta Karma Senjaya emphasizes the potential of the upcoming Bitcoin halving as a pivotal catalyst for market growth, aiming to match or surpass the $51.28 billion transaction volume recorded during the 2021 bull run. 

Senjaya suggests that reducing or removing taxes on crypto transactions could significantly contribute to achieving this target. Currently, crypto transactions face a 0.10% income tax and a 0.11% VAT for users, with exchanges taxed at 0.02% per transaction. 

Tirta stated, indicating a cautious approach towards taxation to nurture the burgeoning market:

"I’ve previously said that this industry (crypto) is still in its embryonic stage, so imposing heavy taxes might kill the industry," 

Furthermore, the impending transfer of crypto oversight to the Financial Services Authority (OJK) in January 2025 hints at possible significant regulatory changes, including the reclassification of crypto as securities and revisions to VAT policies.