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29/10/24
38
Young Indonesians Drive Crypto Investment Surge Amid Regulatory Challenges
Recent data from Indonesia’s commodities regulatory agency reveals a growing trend among young crypto enthusiasts. A substantial portion of the nation’s cryptocurrency investors, over 60%, falls within the 18 to 30 age bracket. Specifically, the report indicates that 26.9% of these investors are aged 18 to 24, while 35.1% belong to the 25 to 30 age group.
In addition to these demographics, the report highlights significant activity in the crypto market, with total transaction volumes reaching an impressive 33.67 trillion Indonesian rupiah, equivalent to roughly $2.1 billion. As of September, the number of active crypto users in Indonesia topped 21.27 million. The most popular traded cryptocurrencies among Indonesians include Tether’s USDt, Ether, Bitcoin, Pepe, and Solana.
Indonesia’s regulatory landscape for cryptocurrencies categorizes them as commodities. The Commodity Futures Trading Regulatory Agency (Bappebti) has put in place a framework to facilitate crypto trading. Nevertheless, users encounter challenges stemming from the country’s dual tax system, which imposes a value-added tax of 0.11% and a 0.1% capital gains tax on crypto transactions. Despite these hurdles, the appetite for digital assets remains strong among Indonesians.
Bappebti has advocated for a reconsideration of cryptocurrency tax regulations, highlighting the potential of digital currencies to become an essential element of the economy. Calls for the Directorate General of Taxes to evaluate existing taxation structures have underscored the growing recognition of cryptocurrency’s role in the financial sector.
The trend of younger individuals engaging in cryptocurrency is echoed globally. In the United States, for instance, data shows that a significant portion of both Gen Z and millennials exhibit a higher likelihood of investing in digital assets when compared to older generations. Trends from other studies indicate that millennials in major economies are increasingly embracing cryptocurrencies, signaling a shift in investment attitudes among the younger demographic.
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