February 2019 was a tumultuous month for the Indonesian crypto-industry with the introduction of regulations that impose staggering thresholds for minimum capital and closing balance requirements among other stringent qualifying criteria for Crypto Asset Exchanges, Custodians, Clearing Agencies and Traders.
The regulatory rationale advanced by Indonesia’s Commodity Futures Trading Supervisory Authority, “Bappebti” is that in view of anticipated transaction volumes, robust financials are the need of the hour to promote market confidence and accountability.
Having permitted futures trading of crypto assets in late 2018[1], Bappebti issued a significant regulatory framework for the crypto asset futures market[2] on the 8th of February, 2019, close on the heels of another regulation which revised the regulatory landscape applicable to general commodity futures trading[3].
The new regulations impose potentially crippling costs and set a high bar for regulatory compliance on a fledgling industry. Additionally, the new regulations also set out a quite comprehensive trading mechanism of the crypto asset trading which shall be followed by all of the relevant parties in crypto asset trading. Should you have any queries or concerns, please do not hesitate to contact our resident digital asset experts.
[1] Peraturan Menteri Perdagangan No. 99 Tahun 2018 Tentang Kebijakan Umum Penyelenggaraan Perdagangan Berjangka Aset Kripto.
[2] Peraturan Badan Pengawas Perdagangan Berjangka Komoditi No. 5 Tahun 2019 Tentang Ketentuan Teknis Penyelenggaraan Pasar Fisik Aset Kripto di Bursa Berjangka.
[3] Peraturan Badan Pengawas Perdagangan Berjangka Komoditi No. 2 Tahun 2019 Tentang Penyelenggaraan Pasar Fisik Komoditi di Bursa Berjangka.
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This article is written by DFDL Lawyers.
This article was first published on the DFDL website.
This article does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and practice in this area. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article.