The Indonesian Futures Exchange Supervisory Board has legalized cryptocurrencies as commodities that can be traded on the country’s futures exchange. Reportedly, regulations for crypto exchanges and related taxations would soon follow as well.
Encouraging the crypto market
Bappebti, the Futures Exchange Supervisory Board of Indonesia, in the latest move, has authorized the dealing of cryptocurrencies in the futures trading market. The board’s market supervision and development bureau head, Dharma Yoga has revealed that the decision comes after a four-month-long study of the issue. After being uncertain about the nature of virtual assets, the move comes as a sign of encouragement to the trading of cryptocurrencies.
Launched in 2005, the board is the only institution with regulatory responsibilities and authorities for several financial institutions, therefore, naturally being of significant importance. Interestingly, Bappebti has given the green light even when the Bank of Indonesia (BI) does not recognize cryptocurrency as a payment instrument.
“The Bappebti has signed a decree to make cryptocurrency a commodity that could be traded at the bourse”,
said Dharma Yoga.
A call for crypto regulation
Following the decree, the agency is now requesting existing domestic cryptocurrency exchanges or ‘bourses’ like Indodax and Crypto Community to submit regulatory proposals on the product specification and the trading procedure. The product specification will include information about the type of cryptocurrencies and tick size of the trading instrument. This is said to be done to create a more comprehensive and effective regulatory framework than the existing mandates.
The averse nature of the national institutions including BI comes from the opinion that cryptocurrency is not as secure a method of exchange as it is claimed to be while garnering the high paced popularity.