Indonesia’s Deputy Minister of Trade, Jerry Sambugga, has proposed a regulation that would require the leadership of the country’s crypto exchanges to be more representative of its citizens.
A letter sent by Sambuga to a Tuesday parliamentary session involving Indonesian regulatory authorities suggested several policy changes in response to “an exciting year for the development of physical trading of crypto assets” in the country. Among the proposed laws is a requirement that two-thirds of directors and commissioners in crypto firms be “Indonesian citizens and resident in Indonesia.”
A Bloomberg report on Wednesday suggested that proposed changes to the country’s crypto policy could affect Terra co-founder Do Kwon’s legal battle. The South Korean national left the country for Singapore in April, and Interpol reportedly put Kwon on a red notice despite the authorities issuing a warrant for his arrest.
According to the report, the acting head of Indonesia’s Commodity Futures Trading Regulatory Agency, Didid Nordiatmoko, said the law aims to stop the leadership in crypto companies from “running away from the country if there is a problem.” In addition to the Citizens Act, Sambuga’s proposal would require crypto companies to have a minimum capital requirement of 100 billion rupiah — roughly $6.7 million at the time of publication — and user funds would be stored in third-party financial institutions or futures clearinghouses.
Related: Indonesia in 2010 It plans to establish a crypto bourse by the end of 2022.
In Indonesia, which has a population of more than 275 million, approximately 11 million have invested in crypto by 2021, Sambuaga said. The country’s Commodity Futures Trading Regulatory Agency has revealed that there are 25 registered crypto exchanges as of April 2022, including local branches of Zipmax and Upbit.