Indonesia will soon have its crypto space under the Regulatory Framework designed by the authorities. The country’s financial watchdog has zero downed new set of regulations for the trading of crypto assets on futures exchanges in Indonesia.
The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti) has released an official press release in which it declares that the agency has imposed a legal framework for the digital assets futures and cryptocurrency. A regulator at Indonesia’s Ministry of Trade has noted that under regulations, cryptocurrency futures exchanges aspiring to operate in the country will have to get registered and approved before they start working.
Back in June, Indonesia decided to consider crypto assets as commodities which can be traded on the country’s futures exchange. The new regulations confirmed the same officially identifying cryptocurrency assets as commodities. Moreover, the announced framework is the inclusion of many important rules especially for those involved in in the crypto futures space. These rules put emphasis on the technical aspect of featuring crypto futures contracts on exchanges platform. The regulations are also designed to promote the adoption of cryptocurrencies as a tradable commodity.
On this, the chief of the agency, Indrasari Wisnu Wardhana notes that the regulations have been introduced with an aim to provide legal clarity to the crypto futures sector. Also, it will ensure the security of both consumers and investors. With that, Indonesian are going to face a number of restrictions due to the regulations. According to the regulations, in order to get approval, the firm needs to have a strong security system and minimum of three employees who are Certified Information System Security Professionals (CISSP).
Moreover, as the document which drafts the rules and registration requirements notes that futures traders and clearing houses that offer crypto futures trading must maintain a closing capital balance of a minimum of 1.2 trillion IDR ($85 million). Additionally, these firms will also have to pay to pay at least 1.5 trillion IDR (Indonesian rupiahs). Due to much higher minimum capital, crypto traders are not happy with the watchdogs. However, these new set of regulations are not applicable for initial coin offerings (ICOs). Notably, ICOs are banned in Indonesia.