Zipmex, a cryptocurrency exchange based out of Singapore, is ready to begin its expansion process after getting the right certifications to continue its work. According to a report from Finance Magnates earlier this week, the exchange has been greenlit by the Commodity Futures Trading Regulator of Indonesia, and is now ready to operate under the financial regulator’s supervision.
New Regulatory Standards to Follow
As the report explained, Zipmex has been in operation across Indonesia since 2019, thanks mainly to a partnership with local interbank settlement network ALTO. The company has helped to handle over $35 billion in Bitcoin trades since it launched, and now that it has the freedom to expand, it will be looking to bring a broader suite of services and establish itself in the Southeast Asian country – including but not limited to allowing trading against the Indonesian Rupiah.
The news is coming after the Commodity Futures Trading Regulatory Agency ruled last month that Bitcoin should be treated by the government as an official commodity in the nation, thus allowing companies to trade the top digital asset across stock exchanges legally. At the time, the agency added that the Indonesian government would also be releasing legalization documents regulating issues such as exchange operations, taxes, and much more in the near future.
The ruling gives legal status to Bitcoin and cryptocurrencies, as well as the exchanges that have already been operating in the country. However, it also outlines some requirements concerning the distribution and circulation of digital assets in the country, especially with regards to asset custodians and services that help complete transactions.
For instance, it explains that exchanges will need to meet specific standards viz a viz Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and risk management. It also mandates that crypto traders should maintain their transaction histories for at least five years. They are also required to have at least one server located in the country
Indrasari Wisnu Wardhana, the agency’s head, explained at the time that they were confident in the new regulation’s ability to provide locals with exposure to the digital asset class, while also protecting them from fraudulent sellers and other inherent risks associated with cryptocurrencies.
The Asia-Pacific Challenge
Zipmex’s expansion, of course, is set to go beyond just Indonesia – a mission that brings inherent challenges, since various countries across the Asia-Pacific region seem to have their own regulatory regimes.
In an interview with news source Cointelegraph, company chief legal officer Bank Yimwilai explained that they would be looking to share their principles of good governance and custody solutions as a means of navigating the different regulatory regimes. He added that by ensuring comprehensive AML and KYC standards, they would be able to operate in a way that complies with the multiple regimes at once.
“Operating across multiple regions has allowed us to adopt the best practice from each particular region. For example, we adopt AML policies that satisfies AUSTRAC, the Australian regulator that regulates money laundering. In addition, SEC Thailand requires institutional-grade custody solutions of digital assets, which we then use in all of the markets that we operate in,” he added.