Chairman of the Indonesian Blockchain Association, Asih Karnengsih, positively welcomed the presence of crypto exchanges in the country. With the existence of a crypto exchange, he thinks it can encourage the crypto industry to be even more advanced because more transparent regulations are supported by more education and capable technology. “The existence of a crypto exchange as a big facilitator hopes for increased security from investors and gains greater trust from market participants so that it can remove the negative stigma about crypto,” he said.
Founder & CEO of PT Pintu Kemana Saja, Jeth Soetoyo, also welcomed the planned presence of a crypto exchange because the government’s commitment together with players in this industry is, of course, to provide legal certainty, as well as protection for investors. However, the presence of a particular exchange for trading crypto assets has some challenges, including education. “Crypto exchanges are expected to play a bigger role. Today’s big problem is that people don’t have a forum for information. With this exchange, we can support it as a source of truth about crypto,” said Jeth.
As per the report by https://bitcoinsup.org/, He also revealed that crypto is global, and many Indonesians use abroad platforms. With the existence of a crypto exchange, it is hoped that the security of Indonesian traders can be better maintained and more accommodated.
The crypto exchange foundation
“There are four foundations that need to be considered, the first is the crypto exchange, the second is the crypto asset trader, the third is the transaction clearing agency, and the fourth is the custodian. Where these four points have different responsibilities but still have one goal, namely to maintain the safety of consumers, “he said. According to Jeth, establishing a crypto exchange at this time is very appropriate, where the growth of investors continues to grow from time to time. During the 2020-2021 period, the customer base of Pintu application users showed a growth of more than 1,000%, which was dominated by users aged 18-30 years.
In addition, when viewed from the point of view of their needs, most of the users are novice investors. They are still learning how to invest in crypto assets. “This is in line with our goal to educate and make it easier for investors to invest in crypto assets. Our target market is newbie investors,” he said.
Previously, it was not only the stock market coloured with novice investors. However, it also happens in the crypto market, and it is often found that novice investors jump directly into the crypto market rather than the stock market.
“The high enthusiasm is caused by wider access. Imagine these investors globally being able to invest together with Elon Musk, co-founder of electric vehicle company Tesla, and space company SpaceX. It reveals a strong and important narrative and is why young people are getting into crypto,” he said.
The Blockchain Phenomenon
He added that this phenomenon is projected to continue to grow. With blockchain technology as a support, millennials can form applications on this technology and open up opportunities for entrepreneurs in Indonesia, especially in blockchain,” he said. Regarding blockchain, Asih Karnengsih explained blockchain technology in the crypto market is used as a technology to support crypto transaction processes. It is tasked with distributing crypto transaction data out of computer networks or servers in the blockchain network. It allows cryptocurrencies to operate without going through a single centre to reduce transaction processing risks and costs.
“This point makes crypto quite attractive because it can contribute to stability in countries with unstable currencies and infrastructure. Furthermore, because crypto can give rise to many applications and wider individual and institutional networks because crypto is global,” he explained. Furthermore, with this technology, investors will be protected from double asset ownership due to the digital nature of crypto assets. In simple terms, blockchain technology is like a ledger that records all transactions on the crypto market.
On the other hand, the correlation between crypto and stocks is getting closer and closer. This similarity has occurred since the third quarter of 2021. According to Jeth Soetoyo, there are similarities in the pattern of price movements and the nature of investors and traders in investing in the two different asset classes.
“In the Indonesian market, I have started to see, especially in the third and fourth quarters, that the crypto and equity markets are quite similar in their price movements. Previously, Bitcoin and crypto were always an asset class with a high correlation with the equity market. The nature of people who have entered the crypto world in the last two years is similar to equity; most are more active,” he said.