The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), has announced the establishing of the country’s first legal framework to carry out trades in crypto and digital asset futures markets, in an official press release on Feb.18.
The agency, which comes under the wing of the Indonesian Ministry of Trade, has made it necessary for entities dealing in crypto futures trading, to seek the regulator’s approval by first applying for registration before being allowed to operate within the confines of the law.
This press release comes hot on the heels of the recent news of the country’s legislation officially recognizing Bitcoin and other crypto assets as trading commodities,
All types of exchanges and clearing houses that offer crypto future trading will be needed to pay a minimum of 1.5 million Indonesian rupiahs (IDR) or $106 million, in addition to a closing balance of at least 1.2 trillion IDR ($85 million), according to the new rule scenario.
The rules also stated crypto service providers and traders to have a closing balance of at least 800 billion IDR ($57 million) alongwith maintaining a minimum amount of 1 trillion IDR ($71 million) before they are allowed to officially trade crypto assets.
The new framework also expects the firms dealing with crypto futures to take a hard stance on money Laundering and terrorism financing schemes.
The new regulation has indeed opened the country’s trade to accept Bitcoin and other cryptos but the main point to be noticed here is the ban on Bitcoin by the country’s central bank is still in effect, thereby refraining the crypto’s use as a payment alternative.
On the back of Bitcoin’s strong performance in the last fortnight, Indonesian interest seems to have peeked, with Bitcoin trading levels achieving new highs over the past week or so.
Head of Bappepti Indrasari Wisnu Wardhana stated that commodities futures trading was focused on creating an ecosystem for supporting the future development of digital innovative business models.