- Indonesia’s crypto market surged 352%, reaching $30B by October 2024, making it one of Asia’s fastest-growing markets.
- A 21 million crypto traders in Indonesia drive the nation’s digital asset boom, with 716,000 using regulated exchanges.
- With new regulations and youth-driven investment, Indonesia is set to remain a key player in the digital assets space.
Indonesia is one of the world’s fastest-growing cryptocurrency markets, with the market size of the country’s cryptocurrency reaching $30 billion in October 2024. This rise of 352% from the first quarter of 2023 where the transactions stood at $6.5 billion. The sharp rise is an indication of increasing adoption of digital assets in Indonesia as the country steps into the world of cryptocurrencies making it one of the most active markets in the Southeast Asian region.
According to a recent report, the trading activity for this year has already exceeded the combined levels of the two preceding years. Although the market reached $19.4 billion in 2022 and $6.5 billion in 2023, it remains below the $54 billion the regulators expected after the market soared in 2021. However, Indonesia’s digital aseet market is still among the most dynamically developing markets in the world.
Active Crypto Market in Indonesia
Currently, there are 21 million cryptocurrency traders in Indonesia and 716,000 of these individuals are trading via approved government exchanges. This makes the nation one of the biggest markets in the world and boasting of having many active traders.
According to report of Chainalysis, Indonesia is among the twenty largest crypto-adopting countries worldwide together with India and Nigeria. Digital Assets usage in the country has remained stable, and its standing in the top 20 economies globally has been consistently achieved for the last three years.
The market has been growing at a fast rate and the Indonesian government has taken notice, the Financial Services Authority (OJK) will be introducing new rules for trading . The new regulations are expected to become effective on January 12, 2025, and they should help to harmonize the crypt assets with the other financial assets, give more structure to the market, and support its stability.
New Regulations Boost
Another interesting fact is that the main customers in the Indonesian market are young people who are active in trading. About half of the respondents are between 18 and 30 years, as more and more millennials invest in cryptocurrencies.
Besides, there are the new rules put forth by the government through Bappebti (Regulation No. 9/2024), which provides institutional investors the opportunity to enter the cryptocurrency market using licensed PFAK. This policy is instrumental in the journey towards making Indonesia as one of the most favorable digital assets nations in Asia.
Some of these are the Altcoins such as Solana and Ethereum, and the Stablecoins such as Tether in which Indonesia is experiencing a surge in the use of cryptocurrency. Due to having an investor base of young individuals and positive regulatory environment, Indonesia can retain its position on the cryptocurrency market.
