The Commodity Futures Trading Regulatory Agency (Bappebti) of the Ministry of Commerce in February has released a regulation related to crypto trading in Indonesia. Although this rule is generally welcomed positively by the crypto asset trading business in Indonesia, there are also provisions in it which are considered burdensome, namely the matter of capital requirements.
In the regulation No. 5 year 2019, for crypto asset traders and crypto asset storage managers must provide paid up capital of Rp1 trillion. Whereas for exchanges and clearing institutions must provide capital of Rp1.5 trillion.
Edi Prio Pambudi, Assistant Coordinating Minister for Monetary and Balance of Payments of the Coordinating Ministry for Economic Affairs, said the principle of regulation, including the one released by the Bappebti, was to protect the interests of both consumers and their businesses.
He said this Bappebti regulation indicated that there were procedures or provisions that would facilitate the actors in carrying out their business.
"If there are many now who say why the conditions are difficult, don't look difficult or not, it's relative. But most importantly, that's the way to filter, that anyone who wants to enter this business is serious. Don't let those who aren't serious take advantage of this growing industry for hit and run, "he said when speaking at the Triv Roadshow in Jakarta on Saturday (3/30).
The government, explained Edi, did not have a bail out scheme when investors suffered losses, because the funds were taken away by the company. As mitigation, the government implements the bail-in scheme, which is how to safeguard the risks, because the industry can be responsible for what is done before the interests of the community.
In addition to consumer protection, the government's concern with the issuance of this regulation, according to Edi, is that the government opens opportunities for business people to adopt blockhain and smart contract technology in real business processes in Indonesia.
"Because we know that crypto comes not only bringing product schemes, but also bringing technology," he said.
Regarding the provisions that are still burdensome to industry players, Edi said the government is still seeing developments.
"Regarding the provisions mentioned are still very heavy, we still see, we still continue to see how they are developing. Because in principle we want all crypto industry players to be responsible for the mechanism of the business being run, "he said. source
rules related to crypto trading
Legitimate, Bitcoin cs is officially traded on the Commodity Futures Exchange
Bitcoin and its friends, referred to as "crypto assets", can now be traded on the Indonesian commodity futures exchange, after the Commodity Futures Trading Regulatory Agency (Bappebti) issues Bappebti Regulation No. 5 of 2019 on February 8, 2019. This regulation is a follow-up of Regulation of the Minister of Trade No. 99 of 2018 which was published in September 2018. Until now Bappebti has not issued an official press release regarding this regulation. Here are the excerpts of these rules.
Bappebti Regulation No. 5 of 2019 contains the technical provisions for the implementation of the crypto asset physical market on the futures exchange. Consisting of 28 articles and entered into force since February 8, 2019
In this rule, crypto assets are intangible commodities, in the form of digital assets, using cryptography, peer-to-peer networks, and distributed ledgers (distributed technology), to regulate the creation of new units, verify transactions and securing transactions without interference from other parties.
While the futures exchange is a business entity that organizes and provides systems and or facilities for commodity buying and selling activities based on futures contracts, sharia derivative contracts, and or other derivative contracts.
The physical market for crypto assets is the physical market of crypto assets carried out using electronic facilities facilitated by futures exchanges or electronic means owned by physical traders of crypto assets to sell or buy crypto assets.
The purpose of establishing the physical market for crypto assets is as a means of forming transparent prices and providing physical handover facilities, as well as being used as price references on futures exchanges.
However, this rule does not regulate the issue of Initial Coin Offering (ICO). Also do not regulate crypto trading on exchangers on the spot market. The regulation states, crypto assets can be traded on futures exchanges if they fulfill a number of requirements.
First, based on distributed ledger technology (DLT). Second, in the form of a crypto asset or crypto-backed asset.
Third, the market cap value is included in the top 500 of crypto asset market capitalization (Coinmarketcap.com) for utility crypto assets. Fourth, it is included in the world's largest crypto asset exchange transaction. Fifth, have economic benefits, such as taxation, grow the information industry and the competence of experts in the field of informatics (digital talent).
Sixth, the risk assessment has been carried out, including the risk of money laundering and funding of terrorism and the proliferation of weapons of mass destruction.
It is also stated that crypto assets can only be traded if it has been determined by the Head of CoFTRA in the asset list.
The Head of Bappebti can form a crypto asset committee to provide consideration and / or advice to the CoFTRA in relation to the activities and development of the physical market trading of crypto assets.
This crypto asset committee consists of elements from the CoFTRA, relevant Ministries and Institutions, Futures Exchange, Futures Clearing House, associations in the field of crypto assets,
related academics, practitioners and associations.
Crypto asset trading can only be facilitated by the Futures Exchange which has obtained approval from the Head of CoFTRA.
In order to obtain approval in facilitating the trading of crypto assets, in addition to fulfilling the requirements as stipulated in the Bappebti Regulation that Organizes the Commodity Physical Market on the Futures Exchange, the Futures Exchange, must fulfill the following requirements: First, have a paid up capital of at least Rp1.5 trillion. Second, maintain the final capital balance of at least Rp1.2 trillion. And third, have at least three employees who are Certified Information Systems Security Professional (CISSP) certified.
What is a futures exchange?
Futures exchange is a term that refers to a trading center where futures and options are traded at a certain price based on applicable rules and regulations. Meanwhile, according to the Republic of Indonesia Law in 1997, futures exchanges are business entities that organize and provide systems or facilities for commodity trading activities based on futures contracts and options on futures contracts.
Meanwhile, the delivery of assets in futures contracts will be carried out in the coming period. The time of delivery or delivery of these assets has been agreed in the contract. Trading futures contracts are legally binding because they have been regulated and are under strict supervision.
Benefits of Futures Exchange
One of the main benefits and uses of the futures exchange is as a means of risk management through hedging activities or commonly called hedging. Factors that are difficult to predict such as extreme seasonal changes, natural disasters and other uncertainties make producers easy to lose. Therefore, hedging needs to be done because in free trade, price fluctuations often cause negative impacts on market participants.
