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Indonesian regulators have finally recognized bitcoin and other encrypted currencies as commodities, providing legal support for the trade in virtual currencies. Therefore, cryptocurrency centers in the country now have a set of requirements to satisfy before they can operate.
Requirements for bitcoin exchanges in Indonesia
The Indonesian Ministry of Commerce's Futures Supervisory Board (Bappebti) has issued Regulation No. 5/2019, which includes a regulation on cryptocurrency trade, as well as an official recognition of cryptocurrencies as goods. On the basis of the new decision, virtual currency trading is now legalized in the country.
As part of the new set of laws, Bitcoin exchanges must use the services of computer security experts and keep records of their transactions for at least five years. In addition, one of their servers must be domiciled in the country and they must have clearly defined organizational structures with departments such as legal, audit, customer support, IT, etc.
Talk to HukumonlineIndrasari Wisnu Wardhana, chief of Bappebti, stressed the need for these regulations:
We want to protect people who want to invest in cryptographic badets so that they are not deceived by fraudulent sellers.
These regulations are part of a broader set of rules applicable to the trading of crypto-encrypted goods on the spot and forward market.
On Thursday (February 14, 2019), Bitcoinist reported that the country's traders were protesting the excessive restrictions of free capital imposed on cryptocurrency futures trading.
Cryptocurrency payments still prohibited
Although these new laws provide legal certainty for cryptocurrency trading, these services have been operational in the country since 2014. Despite the official recognition of virtual currencies as commodities, the ban on cryptocurrency payments is still in force.
Onny Widjanarko, one of the leaders of the Apex Bank (BI), said the bank was part of the debate that led to the recognition of cryptos as a commodity. For Widjanarko, Bappebti's decision does not overrule its decision against cryptocurrencies, its mandate being the protection of the sovereignty and monopoly of rupiah in the country.
Talk to CNBC Indonesia On Friday (February 15, 2019), Widjanarko said:
BI still forbids bitcoin or crypto as a means of payment. Commodity regulation is not a concern for the IB.
What do you think of the new regulation for cryptocurrency exchanges in Indonesia? Let us know your thoughts in the comments below.
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