Indonesia Futures Supervisory Board Designates Cryptos as Commodities
Indonesia’s neighboring countries such as Vietnam, Thailand, Japan, and even South Korea have an open minded, positive approach towards cryptocurrency and blockchain technology. However, the Indonesian government and Bank Indonesia continue to remain hostile towards cryptocurrencies.
However, there seems to be a subtle positive change in the attitude of Indonesian government in the past few weeks. The country’s Trade Ministry Futures Exchange Supervisory Board (Bappebti) has announced that cryptocurrencies will be considered as commodities at the country’s stock exchange. Notably, the country’s central bank still does not recognize cryptocurrencies as a legal tender.
According to a news report by The Jakarta Post (via Kontan.co.id), Dharma Yoga, Bappebti’s head of market supervision and development bureau, has explained that the decision to categorize cryptocurrencies as commodities was made after a four-month study. Dharma Yoga also revealed that all new forms of value transfer will be considered as commodities.
Dharma Yoga also announced that a decree to categorize cryptocurrencies as a commodity that could be traded in the country’s stock exchange was signed by the head of Bappebti.
The new report also mentioned that necessary rules and regulations related to the operation of cryptocurrency exchanges, taxation, terrorism financing, and money laundering will be announced soon. Dharma also said that a portion of these rules would be framed by Bank Indonesia, the Financial Services Authority (OJK), the Financial Transaction Reports, the Taxation Directorate General, and Analysis Centre (PPATK), and the National Police’s Densus 88 counter terrorism unit.
Bappebti expects the existing cryptocurrency exchanges to follow the rules framed by the regulators. Indodax, formerly Bitcoin Indonesia, and Crypto Community would be the likely exchanges which would be affected by the new rules. All cryptocurrency exchanges are expected to submit a detailed application with the list of assets offered and trading procedure. Even the type of cryptocurrencies that are being offered for trading, trading hours, and dispute settlement mechanisms should be provided in detail.
As mentioned earlier, Indonesia is not considered as a crypto-friendly country. In December last year, Agus Martowardojo, the Central Bank Governor announced a blanket ban on all cryptocurrency related transactions. Therefore, there is no possibility of allowing cryptocurrencies as a legal tender as of now. However, categorizing cryptos as a commodity seems to be a step in the right direction.