Asia-oriented news outlet, KrASIA, reported on February 15, Indonesia has introduced new legislation that recognizes Bitcoin (BTC) as a trading commodity.
Bappebti, Indonesia’s Commodity Futures Trading Regulatory Agency, initially signed a decree to make cryptocurrency a commodity future legally tradable on stock exchanges last June. The agency then stated that the Indonesian government would soon release corresponding legislation regulating currency exchange companies, taxation, and other related issues.
The Commodity Futures Trading Regulatory Agency reportedly approved regulation No. 5/2019 today. The regulation recognizes Bitcoin and other digital currencies as a trading commodity. The legislation thus gives legal certainty to cryptocurrency exchanges that have been already operating in the country.
The new policy reportedly outlines a set of requirements in regard to any cryptocurrency circulating in Indonesia. Specifically, cryptocurrencies have to comply with risk assessment, anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements. The policy also stipulates that cryptocurrency traders must keep transaction histories for at least five years and have a server located inside the country.
Indrasari Wisnu Wardhana, head of Bappepti, reportedly said that with the introduction of the new legislation, the agency wants to “give protection to people who want to invest in crypto assets so that they aren’t cheated by fraudulent sellers.”
CRYPTOCURRENCY PAYMENTS STILL PROHIBITED
While these new laws provide legal certainty for cryptocurrency exchanges, such services have been operational in the country since as early as 2014. Despite the formal recognition given to virtual currencies as commodities, the ban on cryptocurrency payment is still in effect.
Bitcoin brokers in Indonesia have become displeased with regulators following new capital requirements that were introduced last October. The new rules oblige brokers to have at least $70 million to launch futures trading.
Onny Widjanarko, a top executive of Indonesia’s apex bank (BI) said that the bank was part of the deliberations that led to the recognition of cryptos as commodities. For Widjanarko, the decision by Bappebti does not negate its ruling against cryptocurrencies as its mandate is the protection of rupiah sovereignty and monopoly within the country.
Which new crypto regulations do you hope to see next? Let us know in the comment section below.