Indonesia Recognizes Bitcoin and Other Cryptocurrencies as Commodities
Indonesian regulators have provided legal backing to virtual currency trade as they now recognize Bitcoin (BTC) and other cryptocurrencies as commodities. Reports say crypto exchanges in Indonesia now require fulfilling a set of rules before being allowed to operate.
What are the New Cryptocurrency Regulations in Indonesia?
A regulation No.5/2019 has been issued by the Indonesian Trade Ministry Futures Exchange Supervisory Board (Bappebti). This new set of regulations includes the ones related to cryptocurrency exchanges. Actually, they are a part of the larger set of rules for trading cryptocurrency commodity in the spot as well as the
Once the regulations mentioned in regulation No.5/2019 are fulfilled by a crypto exchange, they can start offering Bitcoin and other cryptos for trade to the cryptocurrency traders. With the formal regulations in place, the traders can now trade cryptocurrencies as commodities. Therefore, the
What do the Bitcoin and Cryptocurrency Exchanges need to Satisfy for
operating in Indonesia?
From now on, the Bitcoin and other crypto exchanges have to implement the
- Every cryptocurrency exchange in Indonesia has to employ
IT security experts.
- These exchanges have to keep records of their
transactions for at least 5 years.
- At least one server of the crypto exchange must be
located in Indonesia’s geographical location.
- The organizational structures of these exchanges
must be clearly defined. In fact, all the departments such as IT, client support,
audit, legal, and others must be clearly defined.
When asked about the importance of the new set of regulations, Indrasari Wisnu Wardhana (head of Bappebti) said:
to give protection to people who want to invest in crypto assets so that they
aren’t cheated by fraudulent sellers.”
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