Indonesia’s cryptocurrency market has reached a major milestone. It reported over 475 trillion Indonesian rupiah (approximately $30 billion) in transactions by October 2024. This marks a 352% increase compared to $6.5 billion recorded during the same period in 2023.
A Leader in Global Crypto Adoption
Data from the Commodity Futures Trading Supervisory Agency (CoFTRA) highlights Indonesia’s impressive progress. Crypto transactions in 2024 have already exceeded the $19.4 billion total for 2022. Consequently, this places Indonesia among the top 20 countries in cryptocurrency adoption, as noted by Chainalysis’s Global Crypto Adoption Index.
Overcoming the Setbacks of 2022
The latest figures demonstrate a recovery from 2022’s market challenges. That year, a dual taxation policy imposed a 0.1% tax on crypto gains in addition to income taxes. This led to a noticeable decline in market activity. However, the market has bounced back strongly. Yet, it still falls short of the $54 billion peak reached in 2021.
Youthful Investors Drive Indonesia’s Crypto Growth
Indonesia now boasts over 21 million crypto traders, making it one of the largest markets globally. Among these, approximately 716,000 traders use local registered exchanges. Interestingly, more than 60% of Indonesian investors are aged 18 to 30. This highlights the critical role of younger generations in driving market growth.
Policy Changes and Market Momentum
Recent regulatory changes have boosted market confidence. For example, the relaxation of institutional investment restrictions under CoFTRA Regulation (PerBa) Number 9 of 2024 has sparked optimism. In addition, calls to review the dual taxation policy have gained traction under President Prabowo Subiant’s administration.
Indonesia Among the Fastest Crypto Adopters
Indonesia continues to excel in Chainalysis’s Global Cryptocurrency Adoption Index. It ranks third globally, behind only India and Nigeria. The Oceania/Asia region dominates this index, with Indonesia maintaining a strong leadership position.
Popular Cryptocurrencies and Future Prospects
Bitcoin, Ether, Tether, and Solana remain the most traded cryptocurrencies in Indonesia. This aligns with global trends, where millennials and Gen Z investors favor digital assets. In September 2024 alone, Indonesia recorded $2.1 billion in crypto transactions.
As the government explores policy revisions and institutional interest grows, Indonesia’s crypto market seems poised for further expansion. It is cementing its position as a global leader in cryptocurrency adoption.
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