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Following a four-month study, Indonesia’s Commodity Futures Trading Regulatory Agency (BAPPEBTI) has declared cryptocurrency as a commodity subject that can be traded on the commodity futures exchange. As reported by Kontan, cryptocurrency will now be considered as a commodity in the country.

BAPPEBTI will set up regulations on matters such as exchange platforms, wallet, and mining. The process will involve several ministries and government institutions, such as Bank Indonesia and the Financial Services Authority (OJK). Other matters that need to be considered is taxation, which will be regulated by the Directorate General of Tax to suit industry players’ needs.

The agency is also set to regulate savings; customers or investors will have to save their funds on derivative clearing house or BAPPEBTI-appointed banks instead of cryptocurrency exchanges. The steps are taken as a mean to prevent the risk of loss due to embezzlement or hacking.

Other regulations are meant to prevent money laundering and funding for terrorism or other criminal activities through cryptocurrency. The national police and the Indonesian Financial Transaction Reports and Analysis Center (PPATK) will be involved in this matter.

Also Read: Everyone talks about cryptocurrency, but the real hero is blockchain

Trade mechanism

BAPPEBTI will conduct further discussion with the government and call upon existing cryptocurrency exchanges, such as Indodax or other cryptocurrency communities, to create a proposal containing contract specification, product management, or trade mechanism.

The proposal should include information on the type of cryptocurrencies that are being traded, completed with tick size or price faction. It should also explain trade regulations that include trading hours and dispute settlement mechanism between managers and investors or customers.

Cryptocurrency has started to gain popularity in Indonesia, with a growing number of traders’ community in the market. The communities are focussing on trading cryptocurrencies for investment purposes, considering the fluctuating nature of its price.

In the country, there are at least three businesses working to facilitate ICO process: Tokenomy, PundiX, and Vexanium.

The article Bappebti Tetapkan Cryptocurrency Masuk Kategori Komoditi Perdagangan Berjangka was written in Bahasa Indonesia by Yenny Yusra for DailySocial. English translation and editing by e27.

Image Credit: Wes Hicks on Unsplash