Comparative Regulation of Trading Participant Classes and Their Impact on Cryptocurrency Market Liquidity : A Study of Indonesia-Singapore
Keywords:
liquidity, crypto assets, trading participants, market makers, regulation.Abstract
This research examines the influence of trading participant segmentation on cryptocurrency market liquidity and compares the regulatory frameworks of Indonesia and Singapore. In Indonesia, existing regulations do not specifically govern the classification of trading participants, resulting in the potential dominance of market makers over liquidity formation. Conversely, Singapore imposes stricter rules concerning transparency, order-book integrity, and market-maker supervision. The study concludes that Indonesia needs to strengthen its regulatory architecture to create a more liquid, fair, and investor-protective crypto market.
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Commodity Futures Trading Regulatory Agency (Bappebti). Regulation No. 5 of 2019 on Technical Provisions for the Physical Market of Crypto Assets. Jakarta: Bappebti, 2019.
Commodity Futures Trading Regulatory Agency (Bappebti). Regulation No. 8 of 2021 on Guidelines for Organizing Physical Crypto-Asset Trading. Jakarta: Bappebti, 2021.
House of Representatives of the Republic of Indonesia. Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK Law).
Singapore Regulations
Monetary Authority of Singapore. Payment Services Act 2019. Singapore: MAS, 2019.
Monetary Authority of Singapore. Digital Payment Token Guidelines. Singapore: MAS, 2020.
Monetary Authority of Singapore. Guidelines on Provision of Digital Payment Token Services to the Public. Singapore: MAS, 2021. Monetary Authority of Singapore. Market Conduct and Investor Protection Guidelines. Singapore, 2021.
Journals
Lehar, Alfred; Parlour, Christine; Rajan, Uday. “Cryptocurrency Exchanges and Market Quality.” Journal of Financial Economics, 2023.
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Copyright (c) 2025 Rezha Muhammad, Suherman
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