Indonesia Sets Rules For Trading Crypto Futures

Indonesia is known to be among the very few countries in Asia that have entered the cryptocurrency space. In a recent report, the country’s financial watchdog has reportedly set out new regulations designed specifically for the trading of digital currencies on futures exchanges.

Cryptos As Commodities

According to the official report, the Commodity Futures Trading Regulatory Agency or Bappebti revealed the news on Monday. The agency, which is currently under the umbrella of Indonesia’s Ministry of Trade, said that the crypto futures exchanges need not only to be registered but also approved prior to the operation.

The agency has also confirmed that digital currencies are now officially organized as commodities. Due to this, cryptos can now be traded on the nation’s very own futures exchange. Interestingly, this is not something new to the country, especially since it has been clamoring for such change in the recent months. As a matter of fact, this was a decision first reported in June of last year.

Bappebti’s Indrasari Wisne Wardhana, the chief at the company, revealed on the recently release statement that futures exchanges – alongside clearing houses – dealing in digital currencies will have to pay up a whopping capital of around 1.5 trillion Indonesian rupiahs or roughly $106 million. At the same time, it must be successful in maintaining a closing capital balance of nearly 1.2 trillion Indonesian rupiahs or $85 million.

The Agency’s Requirements

Moreover, they are all required to come up with an acceptable level of system security, including a minimum of at least three employees. The latter, in particular, should be Certified Information System Security Professionals or CISSP.

Add to the aforementioned the fact that they have to undergo a risk assessment process. This would reportedly include anti-money laundering (AML) and the never-ending fight against the financing of terrorism (CFT) compliance.

Bappebti has also laid out some rules specifically meant for futures traders, as well as storage services providers of digital currencies. The agency said that both, in one way or another, should be duly approved prior to operating. More importantly, they must be successful in maintaining minimum paid-up capital of around 1 trillion Indonesian rupiahs or $71 million. Lastly, there must be a minimum closing balance present and it is said to be about 800 Billion Indonesian rupiahs or $57 million).

The agency, however, clarified that the new rules do not necessarily apply to the initial coins offerings or ICO. Using digital currencies as a means of payments is believed to still barred in the country.