Indonesian Regulator Releases Regulation For Crypto Futures Market

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Operating under Indonesia’s Ministry of Trade, the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti) has necessitated multiple entities involved in crypto futures trading to seek regulatory approval and apply for registration before legally operating in Indonesia.

Cryptocurrency as a Trading Commodities

Back in June 2018, the Bappebti first greenlighted crypto trading as a commodity on Indonesian stock exchanges.  The framework is based on a number of major rules for futures market operations which includes regulation on the adoption of crypto as a tradable commodity on futures exchange markets and technical provisions for placing crypto futures contracts on exchanges.

Also affecting crypto futures traders and storage service provider, the rules require them to maintain at least 1 trillion IDR ($71 million) and a minimum closing balance of 800 billion IDR ($57 million) before they can be officially approved to trade crypto futures. The regulation further demands crypto futures exchanges to ensure compliance with security policies.

Bitcoin still banned in Indonesia

While being accepted as a tradable commodity on the futures market, BTC still remains banned from being used as payment in Indonesia, following a ban imposed in 2017 by Indonesia’s central bank. As per Lexology, the regulation stressed that the new regulatory scheme cannot be applied to initial coin offerings (ICOs).

Indonesia’s crypto trading volumes have been observing a significant hike recently, during the week ending Feb. 16, the Bitcoin trading volumes reaching around $730,000 on peer-to-peer (P2P) exchange LocalBitcoins as per the data from Coin.Dance.

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