Indonesia has finally recognized cryptocurrency as a commodity, consequently legally tradable on the stock exchange. The regulated virtual currencies as commodities incorporate the implementation of physical form for crypto assets in exchanges down the line. Moreover, it focuses on good governance principles for cryptocurrency traders.
Further, it ensures legal compliance and consumer protection. It also fulfills on requirements for the Indonesian Trade Ministry Futures Exchange Supervisory Board, in order to authorize a physical market for cryptocurrencies through the electronic framework.
To be precise and detailed, it consists of the cryptocurrencies that can be traded along with the mechanism, initiating from the opening of accounts, cryptocurrency investment, cryptocurrency transaction, withdrawing cryptocurrencies, withdrawing funds.
Further, Bappebti set IDR 1 trillion or around $71.17 million as the minimum capital, that must be paid by a facilitator in crypto trading. Moreover, to encourage trade and protect consumers. 80% of the capital will be kept as a deposit.
Oscar Darmawan, the CEO of a major crypto exchange in the country, Indodax, aforementioned about the new regulation, “Regulation is needed to support a sector, help the economy and protect people, but it should not kill an industry.”
As the fourth most populous country in the world, with 260 million population, the size of the cryptocurrency market is quite unclear. At present, Indonesia’s Bitcoin trade volume is less than one percent of the cryptocurrency exchanges worldwide.
Google and Temasek Singapore predict that the online economy of Indonesia will grow to $100 billion by 2025, which is a substantial amount for the South East Asia market to the total $240 billion predictions.
The study further reveals that digital coins rightly deserve commodity status. Officially, the Republic of Indonesia is foreseen to prepare a broader regulation masquerading other aspects of the crypto sector counting on trading and taxation.