FTX Debacle Spurs Indonesia to Revamp Crypto Sector by Setting Up National Digital-Asset Exchange

Indonesia is drawing on the structure of the stock market to revamp crypto trading and mitigate the risks exposed by the collapse of the FTX digital-asset exchange, Bloomberg News reported. A key plank of the plan is a proposed state-backed crypto bourse where private-sector platforms will execute trades, according to the Commodity Futures Trading Regulatory Agency, which currently oversees digital assets. “The hard part is we can’t find a benchmark for such a crypto bourse,” the agency’s head Noordiatmoko said in an interview. “This could be the first.” Other planned state-backed bodies would handle clearing and custody to protect assets and avoid any replay of the alleged fraud at FTX, he said. The blueprint resembles the way stock markets work by separating trading, clearing and custody under official oversight and comes as regulators globally step up scrutiny of private crypto bourses. The FTX exchange slid into a chaotic bankruptcy in November, leaving an $8 billion financial hole and stoking worries that too many such platforms are opaque and risky for investors. Read more.