Indonesian Regulator Gives a Nod for Cryptocurrency Futures Trading
According to the latest report from The Jakarta Post on Monday, June 4, Indonesia's Futures Exchange Supervisory Board (Bappebti) have legally identified virtual digital currencies as commodities and thus allowed them to be traded on the country’s futures exchange.
The report further mentions that Dharma Youga - the chief of market supervision for the commodities market Bappeti - said that the regulatory watchdog arrived to this decision after a four-month study period on this issue. He said: “The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse.”
While talking about the necessary regulatory steps concerning this decision, Yoga said that all stakeholders need to work together. He also stated that regulatory agencies like the Taxation Directorate General, the Financial Services Authority (OJK), and the Financial Transaction Reports and Analysis Center (PPATK) should collaborate together towards creating a proper framework for the trading of digital currencies.
In order to decide on this matter, Yoga has even called the central bank along with the police counterterrorism squad to work on this matter. He said: “The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation, and prevention of money laundering and terrorism financing.”
Yoga also believes that in order to create a conducive regulatory environment for trading digital currency commodities, the country’s digital currency community should also be included in the country’s decision making process. For this, Bappeti has reached-out to Indodax and other stakeholders to submit proposals formulating trading procedures and product specifications.
Earlier this year, Indonesia’s central bank announced that it would ban all the digital currency payments in the country while not considering Bitcoin and other cryptocurrency payment methods as legal tender. The bank at that time said that cryptocurrencies are potential tools of illicit activities of money laundering and terror funding.
It remains to be seen that after the recent stand from the regulatory board, how would the central bank adjust to its decision on virtual digital currencies. Chatib Basri, Indonesia’s former finance minister has also asked the bank to reconsider its position on digital currencies. Additionally, there have also been calls to the bank for working on a national cryptocurrency.