Indonesia is considering regulating cryptocurrencies

Crypto-currencies will be considered as commodities (~ convenience) in Indonesia, according to the country's financial regulator. A study has confirmed the designation or the status of commodities backed by virtual currencies. In addition, the government is considering a new, broader regulation around other aspects such as trading and taxation.

To legitimize crypto-currencies in Indonesia

There were many repressions and reluctance on the part of the Indonesian central bank with regard to cryptocurrencies. By the way , Bank Indonesia (BI)still does not approve virtual currencies as a valid means of payment . The financial institution has issued warnings about the dangers they represent by saying:

"All parties are obliged not to sell, buy or exchange cryptocurrencies. "

Despite this, Indonesia's futures trading supervisory board ( BAPPEBTI) decreed that digital currencies may be designated as everyday consumer goods.

BAPPEBTI has conducted a thorough investigation over the last four months. Other regulatory measures governing the operation of the crypto-stock exchanges in the country will be adopted by the Indonesian government very soon. The regulation will cover the activities of service providers purses and business of mining.

Dharma Yoga, the head of BAPPEBTI's Market Supervision and Development Office , said :

"The CEO of BAPPEBTI has signed a decree to make cryptocurrency a commodity that could be traded on the stock exchange. "

The regulation will cover taxation

According to the Indonesian regulator, the new rules will address issues of taxation, prevention of money laundering and terrorist financing . Other institutions will join BAPPEBTI. These include Bank Indonesia (BI), the Financial Services Authority (FSA), Taxation Division, Financial Transaction Reports and Analysis Center and the anti-terrorist unit of the National Police. The new measures will prevent any attempt at embezzlement and piracy of trading platforms. It seems that the country is also considering setting up clearing services for the cryptocurrency futures market.

Although some traditional institutions are skeptical about digital currencies, the Indonesian crypto-community continues to invest in the thriving industry. The big crypto-purses like INDODAX have an incalculable number of active users, more than the country's traditional stock market.

According to the Yoga declaration , BAPPEBTI will appeal to country-based cryptocurrency companies such as INDODAX. They will be required to submit reports on their activities and establish training procedures to promote the development of a well-defined regulatory framework.

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