Monday, November 11, 2024
HomeLaw & PoliticsYoung Indonesians Lead in Crypto Investments Despite Tax Challenges

Young Indonesians Lead in Crypto Investments Despite Tax Challenges

A significant portion of Indonesia’s crypto users are young adults, according to data released by the Commodity Futures Trading Regulatory Agency (Bappebti). The report, based on statistics from Bappebti and local crypto platforms, shows that over 60% of crypto investors in the country are aged 18 to 30. Within this age group, 26.9% are between 18–24, and 35.1% are 25–30, revealing a strong interest in cryptocurrency among young Indonesians.

In September, Indonesia’s crypto market saw a transaction volume of 33.7 trillion Indonesian rupiah (around $2.1 billion), with 21.3 million registered crypto users. The most traded digital assets include Tether’s USDt, Ether, Bitcoin, Pepe, and Solana. Despite Indonesia’s dual tax system on cryptocurrency—imposing a 0.11% value-added tax (VAT) and a 0.1% capital gains tax—crypto activity remains high, highlighting the demographic’s resilience and adaptability.

The report reflects September 2023 data on crypto demographics and transaction volumes in Indonesia. The dual tax structure was introduced in 2022, presenting an additional cost for crypto users that some analysts argue may deter broader adoption.

The focus is on Indonesia, where crypto assets are officially classified as commodities. This classification means Bappebti, Indonesia’s commodities regulator, provides a framework for crypto trading and oversees compliance across the country’s digital asset markets.

Young Indonesians’ high participation in crypto mirrors a broader global trend, where younger generations show greater interest in digital assets. In the U.S., a Policygenius survey found that Gen Z and millennial investors are significantly more likely to engage in crypto than older groups, while a Bitget study in 2023 reported that 46% of millennials globally hold cryptocurrency.

Despite the tax challenges, Bappebti is actively urging the government to re-evaluate these taxes. Tirta Karma Senjaya, Bappebti’s Head of Market Development, emphasized that as cryptocurrencies potentially become part of Indonesia’s financial system, a more favorable tax structure could encourage wider adoption. Senjaya’s call to the Directorate General of Taxes reflects an industry view that a balanced tax regime might support growth, particularly among young investors eager to integrate crypto into their financial portfolios.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

two × 5 =

- Advertisment -

Most Popular