We all know that cryptocurrency has long been traded in Indonesia, but maybe not all of us know that cryptocurrency trading has just been legalized a year ago. Now cryptocurrency traders no longer need to fear being considered doing business illegally in Indonesia because one of the country's government bodies charged with overseeing commodity futures trading has issued regulations governing cryptocurrency trade.
Indonesian Regulatory Agency for Commodity Futures Trading (Bappebti, stands for Badan Pengawas Perdagangan Berjangka Komoditi) issued four Bappebti regulations related to the operation of digital commodities, i.e. crypto assets and digital gold, trading.
The term used by Bappebti is not 'cryptocurrency' but 'crypto asset' because the Indonesian central bank (Bank of Indonesia) prohibits the use of Bitcoin and other crypto coins and tokens as currency or payment instrument by referring to several laws in force in Indonesia.
The four Bappebti regulations are:
1. Bappebti Regulation No. 2 of 2019 concerning Operation of Commodity Physical Market in the Futures Exchange
2. Bappebti Regulation No. 3 of 2019 concerning Commodities which can be Subject to Futures Contracts, Sharia Derivative Contracts, and/or Other Derivative Contracts Traded on the Futures Exchange
3. Bappebti Regulation No. 4 of 2019 concerning Technical Provisions for the Implementation of Digital Gold Physical Market in the Futures Exchange
4. Regulation No. 5 of 2019 concerning Technical Provisions for the Implementation of the Crypto Assets Physical Market in the Futures Exchange
The issuance of the four Bappebti regulations is a follow-up to the Minister of Trade Regulation No. 99 of 2018 concerning the General Policy for the Implementation of Crypto Assets, and the Minister of Trade Regulation No. 119 of 2018 concerning General Policy of Digital Gold Physical Market in the Futures Exchange. Apparently the Minister of Trade's regulations are counters to Bank of Indonesia's prohibition on the use of Bitcoin and other crypto coins and tokens as a means of investment.
The existence of a legal umbrella for cryptocurrency trade in a country is proof that the country is receiving the progress of the times.
To find out more about cryptocurrency, the articles below might help:
Similarities and Differences between Cryptocurrency and Stocks
