15 Jul 2018 Arjun Agarwal
Cryptocurrencies Trading Added to Indonesia Commodities List
The decision comes after a four-month analysis of the risk of allowing cryptocurrencies in this somewhat restricted market. As a start, only the market leaders will be allowed to operate in the country – Bitcoin, Ethereum, and Ripple, while the rest of the currencies have to wait at least six months before the enroll in Indonesia’s FX and stock market.
To prevent the risk of funds loss caused by hacking attacks, the agency will regulate savings, meaning that there will be appointed banks or derivative clearing houses where investors and customers will be able to save their funds.
Another essential issue for the agency is taxation, money laundering, and terrorism or criminal activities funding through cryptocurrencies. To work on preventive regulations, the government teams up with the Indonesian Financial Transaction Reports and Analysis Center (PPATK), the Taxation Directorate General and the Financial Services Authority.
The agency plans to release a set of regulations related to exchanges, wallets and coins mining.
Such will help the government to administer and monitor the activity of crypto trades in the country.
To prepare the best possible set of regulations, the agency started a dialogue with existing cryptocurrency exchange platforms and communities. The purpose of the discussion is to outline a proposal which covers essential points in product management, coins trade mechanism, and contract specification, like trading hours, dispute settlement, as well as cryptocurrencies in circulation.
The long-anticipated news comes three months after Indonesia’s national bank put itself against any cryptocurrency activities, stating that digital currencies damage the nation's enactment of managing monetary standards and their exchanges.
Cryptocurrency trading is expected to have an immediate positive effect at one of the country’s most visited place - Bali. The island, which is a premium holiday location preferred by tourists from around the world will welcome the agency’s decision as tourists and investors will be able to spend both fiat money and cryptocurrency in the region.