The Trade Ministry’s Futures Exchange Supervisory Board (Bappebti) has declared that cryptocurrency would be future trading subjects or commodities at the bourse, even though Bank Indonesia (BI) does not acknowledge such currencies as payment instruments.
“The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse,” said the head of Bappebti market supervision and development bureau Dharma Yoga as reported by kontan.co.id on 3rd June. Dharma said the decision was arrived at after the board was leading a study on the matter in the last four months with a conclusion that cryptocurrencies deserved to be considered commodities.
The government is expected to announce a supporting regulation that will have an impact on several issues including cryptocurrency exchange companies, taxation, and prevention of money laundering and terrorism financing, said Dharma. He said the issuance of the regulation would involve a number of institutions like BI, the Financial Services Authority (OJK), the Taxation Directorate General, the Financial Transaction Reports and Analysis Centre (PPATK) and the National Police’s Densus 88 counterterrorism squad.
Dharma continued that as per the government’s attempts to declare the regulation, Bappebti also called on existing cryptocurrency bourses like Indodax and Cryptocurrency Community to present their proposals on the product blueprint and the trading procedure. The product specification will incorporate information about the type of cryptocurrencies and tick size of the trading instrument, while the procedure will involve the trading hours and dispute settlement mechanism, he said.
Indonesia’s central bank, Bank Indonesia (BI), does not approve of cryptocurrencies as payment instruments, and its lack of crypto endorsement led to the closure of two Indonesian cryptocurrency exchanges. Of late, in mid-January Bank Indonesia had also announced a warning to all citizens against using cryptocurrency due to high risk and volatility. Trade Ministry’s Futures Exchange Supervisory Board’s decision to accept cryptocurrencies as the commodity will send the right signals to cryptocurrency investors.
Image via Lima Charlie News
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