Indonesian Government tightens crypto asset trading supervision
30 March 2022
In a bid to increase public confidence in crypto asset trading, the Indonesian Government, through the Ministry of Trade’s Commodity Futures Trading Regulatory Agency (“BAPPEBTI”) recently expanded its supervisory role over such trading activities.
By issuing BAPPEBTI Regulation No. 8 of 2021 on Guidelines for Physical Trading of Crypto Assets (“New Regulation”) (effective from October 2021), BAPPEBTI now provides (i) clearer guidance on the requirements for crypto asset traders operating in Indonesia, (ii) detailed regulations on BAPPEBTI’s approval process for the relevant institutions required for the development of a crypto asset trading business in Indonesia, including a futures exchange and a futures clearing house, and (iii) a crypto asset trading mechanism.
The New Regulation increases the minimum capital requirements for crypto asset traders (i.e. brokers) and provides more rigorous registration and approval requirements for business entities to become crypto asset physical traders (compared to the earlier regulation, on the same subject, that was revoked). A two-stage registration/approval process is contemplated under the New Regulation: a transitional stage, being registration as a “candidate” crypto asset physical trader and a final stage, being approval (licensing) to be a crypto asset physical trader.
This is an extract of an article by Soemadipradja & Taher, our network firm in Indonesia. To read the full article from the Soemadipradja & Taher website www.soemath.com, please click here.