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Indonesia: New Legislation Recognizes Crypto as Trading Commodity

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A very known Asia-oriented news outlet KrASIA had released that Indonesia has brought up new legislation that identifies bitcoin (BTC) as an important trading commodity. The necessities of Indonesia have benefitted a trading regulatory agency name Bappebti, for authorizing digital currencies as a trading commodity under the regulation No.5/2019. It provides technical viands for the execution of cryptocurrency exchanges. Bitcoin is now treated as an asset and can be traded. As per the views of Indrasari Vishnu wardhana, the head of the Bappebti the regulation is expected to ensure legal certainty while guarding the parties that are a part of the crypto asset transactions.

He quoted that:

“We want to give protection to people who want to invest in crypto assets so that they aren’t cheated by fraudulent sellers,”

Added to this the Head of Bank of Indonesia(BI) Payment System Policy Department Onny Widjanarko stressed that:

“BI still prohibits Bitcoin or crypto as a means of payment.[…] Commodity is not an area of BI, but we are concerned about the above.”

Even before this regulation had been brought into existence, many other cryptocurrency exchanges took place in Indonesia, for example, bitcoin.co.id(known as Indodax) was in function until 2014. It was further disrupted due to dismal about the extent to which these transactions had been legal and provoked by the truth that Indonesia’s Central Bank had banned the cryptocurrency as a payment option. This regulation further keeps a check on the list of various specifications for the trading to be done in Indonesia such as passing the risk assessment, to strike off that it is being misused in money laundering schemes or the financing required for terrorism. The list further specifies traders to have a client support decision, hire at least one security practitioner who has been trained well, hold back all the exchange related data at least for five years and have a server inside the nation. This regulation had instilled a lot of anger amongst the Bitcoin brokers. They were asked to have at least $70 million to be a part of future trading. Based on the new regulations cryptocurrency should not be used, but trading platforms that provide cryptocurrency based instruments are allowed to do so. After adding up further, the final bill for these trading platforms itself required minimum funds of 1 trillion rupiahs. Bappebti authored this addition. Oscar Darmawan, CEO of local cryptocurrency exchange Indodax, had shared that the capital involved for all of this was more than the cost of setting up a rural bank. In recent times Indonesia has shown an eminently conservative approach to its cryptocurrency transactions.

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