JakartaThe most traded cryptocurrencies in Indonesia in the first quarter of 2024 were Tether (USDT), Bitcoin (BTC), Pepe (PEPE), Shiba Inu (SHIB), and meme coins such as Dogecoin (DOGE).
“Compared to the fourth quarter of 2023, there is a change in cryptocurrency preferences. At that time, RNDR and SOL were in the top five trading assets along with BTC and ETH,” Tirta Karma Senjaya, head of futures trading development and supervision at the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti), said during the seminar “Bappebti's Efforts Towards the Development of Indonesia's Crypto Market” on Thursday.
According to a survey conducted by the Indonesia Crypto Network from December 2023 to January 2024 titled “Latest Survey: Five User Behaviors of Indonesian Crypto Investors,” 53% of Indonesians currently investing in crypto have allocated more than 500,000 rupiah ($35).
Tirta Karma Senjaya noted that by the first quarter of 2024, the number of crypto investors in Indonesia is expected to reach 20 million, up about 570,000 from 19.18 million in February 2024, with transaction volume reaching Rp 211 trillion. Despite this surge, the industry faces many challenges, especially complex regulations.
“Appropriate regulation should ensure safety of investment while leaving the industry and its ecosystem supporters room to innovate and explore,” he said.
Tirta added that the challenge is a shared responsibility, especially for governments, in regulating the use of blockchain. “I believe that development from the upstream side will benefit Indonesia,” he said.
Speaking at the event, Malikluksuno Utomo, legal adviser to crypto investment platform Pintu Kemana Saja (Pintu), said Indonesia's crypto industry faces regulatory challenges due to its fast-paced and dynamic nature, with various cases emerging daily.
“Spot trading is just one product, there are many others including DeFi, Web3, non-fungible tokens (NFTs) and other crypto products that pose challenges for everyone,” he said.
He stressed the importance of educating the public, not only to increase market penetration as the number of investors increases, but also to improve investors' understanding of the risks associated with cryptocurrency investments. “Investors should do their research, determine the risks, and wisely allocate the percentage of their funds invested in crypto assets,” he added.
Yudno Lawis, CEO of cryptocurrency exchange Tokocrypto, predicted that crypto asset trading volume in Indonesia could reach 800 trillion rupiah within a year.
“In the second half, probably the third and fourth quarters, the average could rise from 160 trillion rupiah per quarter to around 200 trillion rupiah, that is, around 400 trillion rupiah in the second half of this year,” Yudno said.
He explained that the official approval of Bitcoin (BTC)-based ETF products in the United States, followed by the possible approval of Ethereum (ETH)-based ETFs, is having a positive impact on cryptocurrency markets both at home and abroad.
The U.S. Securities and Exchange Commission (SEC) approved a Bitcoin (BTC) ETF on Jan. 12 and recently approved an Ethereum (ETH)-based ETF, both of which are expected to launch by the end of the year.
“I believe this will drive the market globally and drive Bitcoin and Ethereum prices higher in the second half of the year, which will in turn lead to increased trading volumes,” Yudno concluded.
Tags: Keywords:
