Bappebti, the Indonesian Trade Ministry’s Futures Exchange Supervisory Boards has legalized cryptocurrencies as commodities in the country. Local media sources announced the landmark decision on June 3, 2018. Bappebti’s directive comes even as the country’s central bank does not recognize cryptos as means of payments.
Cryptocurrencies are Now Commodities in Indonesia
According to The Jakarta Post, Bappebti’s decision means that people can trade cryptocurrencies on the country’s futures market. Speaking to local media sources about the decision, Dharma Yoga, the head of Bappebti market supervision and development bureau, said that:
The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse.
According to Yoga, the Bappebti board carried out an extensive four-month review before deciding to classify cryptocurrencies as commodities. Yoga also said that:
The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation, and prevention of money laundering and terrorist financing.
Creating the Proper Regulatory Framework
Concerning the regulatory steps to take in the aftermath of the decision, Yoga said all necessary stakeholders need to work together. According to him, financial regulators like the Taxation Directorate General, the Financial Services Authority (OJK), and the Financial Transaction Reports and Analysis Center (PPATK) need to collaborate to create the proper regulatory framework for cryptocurrency commodity trading. Also, Yoga called on the central bank and the police counterterrorism squad to be part of the process.
According to Yoga:
The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation, and prevention of money laundering and terrorism financing.
The quest to create the perfect regulatory environment for crypto commodities trading will not be complete without the active participation of the country’s digital currency community. Thus, Yoga said Bappebti is reaching out to Indodax, and several other stakeholders to submit proposals for trading procedures and product specifications. Some of the required information includes the type of cryptos and the tick size of trading instruments. Other pertinent information includes the mechanism for dispute settlement as well as the prescribed trading hours.
Central Bank Still Against Cryptocurrencies
All eyes are on the Indonesian central bank to see how it adjusts its stance on digital currencies. The apex bank earlier classified cryptos as not being a legal exchange medium. Thus, there is a prohibition on crypto payments in the country. According to the bank, cryptos are a veritable means for money laundering and terrorist funding.
There have been calls for the bank to look into creating a national crypto for the country. The country’s former finance minister, Chatib Basri, called on the bank to reconsider its stance on digital currencies.
Will this latest development force the country’s central bank to rethink its prohibition on cryptocurrency payments? Do you think this decision will turn Indonesia into a cryptocurrency trading hub in the Asian theater? Keep the conversation going in the comment section below.
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