Indonesia has released new Crypto futures assets trading regulations for exchanges. The new regulations have been set out by the country’s financial watchdog.
Indonesia Releases New Crypto Futures regulations
The Bappebti (Commodity Futures Trading Regulatory Agency) which falls under the Ministry of Trade in Indonesia made the announcement of the new regulations on the 18th of February. According to the new regulations, all exchanges involved in trading in Crypto futures will have to be registered and approved by the agency before they can be allowed to operate in the country.
The financial watchdog also reiterated that the agency recognizes Crypto assets as commodities which can be traded in the Crypto exchanges within the country. This decision was first made public mid last year.
Indrasari Wisnu Wardhana, the chief of the financial watchdog, stated during the release of the new regulations on Monday that the agency has put the regulations in place to not only protect the investors and consumers but also in order to assure the Crypto futures sector of legal certainty.
The Newly Released Rules And Regulations
According to the document containing the full details of the requirements that come with the new rules and regulations, the futures exchanges and clearing houses will have to fulfil a number of requirements in order to operate within the country. Among these requirements is the payment of at least $106 million (1.5 trillion Indonesian rupiahs) in capital as well as the maintenance of $85 million (1.2 trillion Indonesian rupiahs) as the closing balance.
Also among the requirements in the clearing houses and exchanges involved in Crypto trading will have to maintain a system security of good level and have at least three personnel with CISSP (Certified Information System Security Professionals) credentials. The agency added that a risk assessment process will also have to be carried out on the establishments including the confirmation of the AML (anti-money laundering) and CFT (financing of terrorism) compliance processes.
The agency has also set up rules and regulations for traders dealing in futures and providers of storage services. Among the rules applying to these is the requirement that they be approved prior to operating and both have to maintain a capital of $71 million (1 trillion Indonesian rupiahs) and a $57 million (800 billion Indonesian rupiahs) closing balance.
The Bappebti did clarify that ICOs do not come under the newly released rules and regulations. The use of digital currency in payments is however still banned in Indonesia.
Reactions To The Bappebti Regulations
Going by a Reuters report Crypto traders within the country are not pleased with the new regulations stating that the minimal capital has been set too high which would limit the growth of the market.
Oscar Darmawan, the chief executive of Indodax, a digital asset trader, told Reuters that the set minimal capital is in fact higher than the one set for establishing a rural bank. Darmawan also added that the amount is also higher than the minimum required of traditional commodities which is $177,000 (2.5 billion rupiah).