Indonesia’s Futures Exchange Regulator Issues New Crypto Rules

News, Regulation | February 14, 2019 By:

Indonesia’s Trade Ministry Futures Exchange Supervisory Board (Bappebti) has issued new regulation on the implementation of physical markets for crypto assets in futures exchanges.

Local news outlet Jakarta Post reported that the Ministerial Regulation No. 5/2019 focuses on good governance for cryptocurrency tradèrs, legal certainty and consumer protection. The regulation will also require Bappebti to establish a physical market for cryptocurrencies through electronic infrastructure.

According to the new rules, all tradable crypto assets will be regulated, including mechanisms for crypto trading, starting from the opening of accounts, fund saving, crypto transactions, withdrawing crypto assets and withdrawing funds. Crypto traders will be required to transfer Rp100 billion ($7.13M USD) to their accounts, of which Rp80 billion ($5.6M USD) must be kept as a deposit. In order to become a licensed crypto trading platform, operators are required to transfer Rp1 trillion ($71.3M USD) in capital and keep Rp800 billion ($107M USD) of which in their accounts.

Local crypto traders are unhappy with the new rules, stating that it will hinder development of the young but growing market. According to the traders, since October 2018, the country has allowed futures trading of cryptocurrencies as a way to provide hedging tools to protect customers from fluctuations in prices of cryptocurrencies, but there have been no futures transactions for any digital asset so far.

Rekeningku CEO and co-founder Sumardi said that the requirement for the transferred capital was too high, but he believes the regulation could still be revised because it was only issued by Bappebti.

Indodax chief executive Oscar Darmawan said that the “very large” minimum capital level is more than the requirement for opening a rural bank and much higher than the 2.5 billion rupiah minimum paid-up capital for a futures broker of other commodities. He added that regulation is needed to support a sector, help the economy and protect people “but it should not kill an industry.”