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New Legislation in Indonesia Sees Crypto as a trading Commodity

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According to reports by KrASIA (Asia oriented news outlet) on February 15, The new legislation of Indonesia has accepted Bitcoin (BTC) as a trading commodity. Bappebti, Indonesia’s Commodity Futures Trading Regulatory Agency initially signed a document in the month of June in order to enable trading of cryptocurrency legally on stock exchanges. Following this, the agency stated that the government of Indonesia would soon come up with similar legislation which will be responsible for regulating currency exchange companies, taxation, and other related issues.

According to reports, today; Bappebti has approved regulation number 5/2019 which essentially percieves Bitcoin along with other digital currencies as a trading commodity. As a result of this, Legislation gives legal confidence to cryptocurrency exchanges which are already functioning in the country. Reports suggest that the new policy notes a set of requirements for any cryptocurrency circulating in Indonesia. To be more specific, cryptocurrencies are required to comply with AML (Antimoney laundering), risk assessment and overcoming financing of terrorism. The policy further suggests that traders of cryptocurrencies must keep a record of their transactions for a minimum of five years.

According to Indrasari Wisnu, Head of Bappebti, with the introduction of the new legislation, the agency wants to ‘give protection to people who want to invest in crypto assets so that fraudulent sellers don’t cheat them.’ Following this, Onny Widjanarko, Head of Bank of Indonesia Payment Policy Department came out to say 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.’

However, Bitcoin brokers in Indonesia are unhappy with regulators because of the new capital requirements which were brought into the picture last October. The new rules compel brokers to have a minimum of $70 million to launch future trading.

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