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Indonesia’s Crypto Market Soars: What Drives the $30B Surge?

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Indonesia’s Soars What Drives the $30B Surge

  • Indonesia’s crypto transactions hit $30 billion by October 2024, a 352% year-on-year rise.
  • With 21 million crypto traders, Indonesia ranks among the largest global crypto markets.
  • Youthful investors dominate, with 60% of Indonesian crypto traders aged 18 to 30 years.

The use of cryptocurrencies in Indonesia has been rapidly growing, with transactions hitting $30 billion by October 2024. This represents a 352% increase from the same period in 2023, when transactions totaled just $6.5 billion. The surge shows that there is heightened interest in the crypto assets as the market is still rapidly growing in the Southeast Asian nation.

Trading activity this year alone has outstripped the total of the two previous years combined. The market volume was $19.4 billion in 2022 and $6.5 billion in 2023. However, the Indonesian crypto market has yet to reach the $54 billion regulators expected, as the crypto assets peaked in 2021.

Booming Trader Numbers

Bappebti, Indonesia’s crypto regulator, recently revealed that the country now has 21 million cryptocurrency traders. Among these, 716,000 are trading through local, government-approved exchanges. This makes Indonesia one of the largest crypto markets, with many engaged traders.

This has made Indonesia one of the world’s most advanced countries in terms of crypto adoption. According to Chainalysis’ Global Crypto Adoption Index, Indonesia is among the countries, including India and Nigeria, with the fastest-growing cryptocurrency markets. Crypto adoption in Indonesia has remained in the top 20 countries for the last three years.

New Regulatory Plans

In response to the rapid growth and increased interest in the crypto market, the Financial Services Authority of Indonesia (OJK) plans to develop new rules for crypto trading. These rules, which will come into force on January 12, 2025, intend to bring crypto assets into parity with traditional financial instruments and give the market a more coherent structure.

A large number of Indonesia’s crypto investors are the youth, as 60% of traders are between 18 and 30 years of age. New investors, especially millennials, are also using digital currencies for their investment portfolios, which is a major force behind the market’s growth.

Bappebti has released regulation No.9/2024, which opens the door for institutional investors to enter crypto. Under the new policy, these investors can participate through the licensed Physical Crypto Asset Traders (PFAK). This is seen as a major step in the attempt to make Indonesia the crypto hub of Asia.

Top Crypto Assets

Altcoins, such as Solana and Ethereum, and stablecoins like Tether are Indonesia’s most popular digital assets. These cryptocurrencies are currently dominating the nation’s rapidly expanding digital economy.

The government of Indonesia has realized the potential of the crypto market and has shifted its attention to developing policies that will prompt positive growth of the market. With high crypto adoption and a young investor base, Indonesia is set to remain active in the market.

The post Indonesia’s Crypto Market Soars: What Drives the $30B Surge? appeared first on CryptoTale.

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