Indonesian crypto markets are currently seeing a surge in investment activity by youngsters. According to data from Indonesian regulators, Gen Z and Millennials between the ages of 18 and 30 make up over 60% of cryptocurrency investors in Indonesia.
This interest in the digital asset world comes at a time when the country is seeing a transformative period in terms of crypto regulation and acceptance.
Indonesia Sees Rise In Crypto Investment From Youngsters
According to local media Kompas.id report, cryptocurrency is growing in popularity among young Indonesians, particularly those in the Gen Z and Millennial age groups.
By September 2024, up to 26.9% of cryptocurrency investors in the nation were between the ages of 18 and 24, according to data from the Indonesian Commodity Futures Trading Regulatory Agency, also known locally as Bappebti.
Indonesia Undergoes Crypto Regulatory Reform
The interest from the young generation in the digital asset world comes at a time when Indonesia is seeing a reform in terms of regulatory control over cryptocurrencies.
The nation’s primary cryptocurrency regulator formally launched a cryptocurrency exchange on July 20, 2023, peeking interest of many in the nation. It is anticipated that these will offer legal stability while shielding the user base from dangers associated with cryptocurrency.
The Indonesian government previously increased the number of tradable cryptocurrencies to 501 in June 2023, including Ethereum, Solana, and Bitcoin. This action is a part of a larger government effort to make it easier for the nation to use digital currencies.
A new law that moves supervisory authority from Bappebti to OJK, with a two-year transition period, is currently changing Indonesia’s crypto regulations. Since cryptocurrencies are currently not regarded as legal tender in Indonesia, they can only be exchanged like commodities. However, following the period of transition to the new regulator, it is anticipated that cryptocurrencies will be regarded as securities in Indonesia.
Indonesia Crypto Growth: What To Expect?
In the upcoming years, Indonesia’s cryptocurrency market is anticipated to grow significantly. Market forecasts by Statista indicate that this market will generate US$1.8 billion in revenue by 2024. Between 2024 and 2025, this revenue is anticipated to increase at an annual rate of 4.42%, reaching a total revenue of US$1.7 billion by 2025 end year.
In 2024, the Indonesian cryptocurrency market is projected to generate an average revenue per user of US$63.6.
Additionally, it is anticipated that by 2025, there will be 28.65 million users in Indonesia’s cryptocurrency market. The period will also see the user penetration rate rising to 10.19%, and by 2025, it is expected to rise to 10.16%.
These figures show how well-liked and promising the Indonesian cryptocurrency market is becoming.