Authorities in Indonesia have lastly identified Bitcoin and other cryptocurrencies as commodities, thus offering legal support for trading crypto currencies. Therefore, cryptocurrency transactions in the nation now have a set of specifications that must be pleased before being able to function.
The Indonesian Trade Ministry Futures Exchange Supervisory Board (Bappebti) issued regulation No.5/2019 including regulations for cryptocurrency exchanges, as well as, a official recognition of crypto currencies as commodities. Centered on the new ruling, virtual currency trading is now legalized in the country.
As part of the new set of laws and regulations, Bitcoin exchanges must implement the services of IT security experts and keep details of their transactions for a minimum of 5 years. Also, one of their servers must be domiciled in the country and they must have clearly explained organizational structures with divisions like legal, audit, client support, IT, etc.
Talking with Hukumonline, Bappebti chief, Indrasari Wisnu Wardhana, pointed out the need for these regulations saying:
We want to give protection to people who want to invest in crypto assets so that they aren’t cheated by fraudulent sellers.
These regulations form part of a much larger set of rules for crypto currency commodity trading each in the spot and futures trading market.
On Thursday, (February 14, 2019), Bitcoinist reported that traders in Indonesia were protesting the excessive paid-up capital restrictions enforced on crypto currency futures trading.
Crypto Currencies Payments Still Restricted
While these new laws and regulations provide legal certainty for cryptocurrency exchanges, these kinds of services have been operational in Indonesia since as early as 2014. Despite the official recognition given to virtual currencies as commodities, the ban on cryptocurrency payment is still in effect.
Onny Widjanarko, a top executive of Indonesia’s apex bank (BI) said that the bank was a 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.
Talking to CNBC Indonesia on Friday (February 15, 2019), Widjanarko said:
BI still prohibits bitcoin or crypto as a means of payment. Commodities regulation is not an area of concern for the BI.
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Content courtesy – bitcoinist