Indonesia’s markets regulator, the Future Exchange Supervisory Board (Bappebti), signed a formal decree to make cryptocurrency trading on futures exchanges as a commodity.
According to Dharma Yoga, head of Bappebti market supervision and development bureau, the Future Exchange Supervisory Board decided to allow crypto to trade as a commodity as a result of a four-month study by the regulator into the subject.
The Indonesian government plans to issue supporting regulations that will enable them to manage taxation as well as prevent money laundering, currency exchange companies, and terrorism financing.
The issuance of such regulations will involve many other authorities including Bank Indonesia (BI), the country’s central bank, and the Financial Services Authority (OJK), the country’s financial regulator.
BAPPEBTI has also called upon crypto bourses like Indodax and Crypto Community to provide a product specification and trading process will also collaborate with BI and a variety of government financial, tax, and police agencies.
The product specification will include information about types of currencies and tick size of the trading instrument, whereas the process will talk about trading hours and dispute settlement mechanism to ensure investor safety.
This decision comes after the country’s central bank, Bank Indonesia (BI), rejected to recognize cryptocurrencies as payment instruments which also led to shutting down of two Indonesian crypto exchanges. More recently, in mid-January Bank Indonesia had also issued a notice to all citizens against using cryptocurrencies, citing their high risk.