By 2021, the number of global cryptocurrency holders is expected to increase by 3.9% to more than 300 million cryptocurrency users worldwide, with more than 18,000 businesses already accepting cryptocurrency as payment. India currently leads with 100 million users, followed by the United States with 27 million users and Russia with 17 million users.
According to Triple A data, Indonesia has the seventh largest crypto user base after Brazil and Pakistan. The number of cryptocurrencies in Indonesia is estimated to be around 7.2 million Indonesians, while according to the Indonesian Blockchain Association, as of July 2021, the number of cryptocurrencies in Indonesia has reached 7.4 million, which is 85% more than in 2020. This number greatly exceeds the number of investors in Indonesia. Stocks in Indonesia only have 2.7 million investors, according to the Indonesian Stock Exchange.
The total population of Indonesia in June was 272 million, which means that only 2.7% of the population of Indonesia owns cryptocurrency. This shows that there is still room for growth, development and access to more corners of Indonesian society.
The rapid growth of cryptocurrency investors in Indonesia is partly due to Indonesian regulators welcoming the development of crypto and blockchain with open arms. Throughout 2021, there have been many discussions with officials, new regulations for cryptocurrency, and developments in the sector.
According to Dhil Rizkia, head of development at local media company Coinvestasi, the rise of Indonesian crypto investors is also reflected in the rise of crypto media. “By 2021, Coinvestasi has gained many new audiences on our channels, including Instagram and YouTube, which have grown by over 1.877% and 1.388%, respectively.”
2021 was a great year for cryptocurrencies, and in this article, we take a look at the most important trends in the Indonesian crypto industry over the past year.
Whitelist of legal digital assets
Bitcoin (BTC) is a legal commodity in Indonesia and can be traded on cryptocurrency exchanges. Earlier this year, the Commodity Futures Trading Regulatory Authority (BAPPEBTI) released a whitelist of legal cryptocurrencies for trading in Indonesia.
This whitelist consists of 229 cryptocurrencies, including Bitcoin, Ether (ETH), Polkadot (DOT), Cardano (ADA), and the popular Dogecoin (DOGE) memcoin, which are allowed to trade on listed exchanges.
These cryptocurrencies are chosen from two ways: The first is a legal approach that takes into account the top 500 coins based on market capitalization, in accordance with the provisions of Regulation No. 5 of 2019.
Second, through a hierarchical analysis process whereby BAPPEBTI evaluates security aspects, founders and development teams profiles, management of blockchain systems, scalability of blockchain systems, roadmaps and verifiable progress.
With the increasing number of cryptocurrency users and investors in Indonesia, the government, through BAPPEBTI and the Tax Director, is also considering taxing cryptocurrency trading. Currently, cryptocurrency taxes are still being discussed with many market participants such as exchanges and industry associations.
BAPPEBTI stated that the crypto tax in Indonesia could be around 0.05%, lower than the 0.1% tax imposed on stock traders.
Meanwhile, the government has reportedly started discussions about a 0.03% income tax for crypto investors.
Cryptocurrency is forbidden
The question of whether Bitcoin and cryptocurrencies are halal (allowed) or haram (prohibited) under Islamic law has been a long and heated debate. As a Muslim-majority country, this issue is particularly important for Indonesia.
In October, the East Java branch of one of the largest Muslim organizations in Indonesia ruled that while cryptocurrencies may be approved by the government, they cannot be considered halal, “based on several considerations, including the spread of fraud, they are considered illegal.”
Less than a month later, the National Council of Ulemas (MUI) – Indonesia’s highest Islamic scientific body – found cryptocurrencies forbidden due to alleged elements of “uncertainty, effort and harm”.
In addition, trading cryptocurrency as a digital commodity/asset does not comply with other requirements of the Islamic Finance Law, because, according to the MIU, it lacks necessary elements such as physical form, value, ownership and portability. to the buyer.
NFT finds celebrity support for governor
The development of non-fungible tokens (NFTs) in Indonesia accelerated in 2021, especially after Ridwan Kamil, Governor of West Java Province, jumped into this trend by inviting West Java artists to create, promote and promote their own works.