Indonesia’s crypto market has reached a significant milestone, recording more than 475 trillion Indonesian rupiah (approximately $30 billion) in transactions as of October 2024.
This marks a dramatic increase from the $6.5 billion in transactions recorded in the same period last year, reflecting a 352% growth.
However, Indonesia’s crypto transactions are still trailing behind 2021, when they reached around $54 billion, largely due to a bullish market that year.
According to the Commodity Futures Trading Supervisory Agency (CoFTRA), the market’s impressive expansion noted that cryptocurrency transactions in 2024 have already surpassed the total of $19.4 billion recorded in 2022.
The latest data also supports Indonesia’s ranking in Chainalysis’s Global Crypto Adoption Index, which highlights Indonesia as one of the fastest adopters of cryptocurrency worldwide, alongside India and Nigeria.
The surge in transactions is accompanied by a growing number of crypto traders in Indonesia. The country now boasts 21 million crypto traders, with 716,000 using local registered exchanges.
This policy added a 0.1% tax on crypto gains to standard income taxes, contributing to a marked decline in market activity. Despite this setback, recent data shows a promising recovery, with 2024 transaction totals already surpassing those of the previous two years combined.
The Indonesian crypto market faced significant turbulence following the 2021 high, primarily due to the introduction of a “dual taxation” policy in 2022.
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Recent policy changes in Indonesia, including the relaxation of restrictions on institutional investment through CoFTRA Regulation (PerBa) Number 9 of 2024, may have contributed to the September cryptocurrency rally.
Seven of the top ten countries in the index are from this region, with only India and Nigeria surpassing Indonesia in adoption.
Indonesia’s impressive recovery is reflected in its position as the third-highest country on Chainalysis’s Global Cryptocurrency Adoption Index, with the country continuing to lead the Oceania/Asia region.