As a seasoned researcher with extensive experience in the financial sector and a particular interest in the dynamic world of cryptocurrencies, I am thrilled to see Indonesia taking decisive steps towards regulating its crypto market. The extension of the deadline for crypto exchanges to comply with regulations is a prudent move that allows these platforms to adjust and adapt to the new rules.
The Indonesian agency overseeing commodities futures trading, known as BAPPEBTI, has pushed back the due date for cryptocurrency platforms to fulfill the essential criteria in order to obtain a Physical Cryptocurrency Trader License, following revisions to the related legislation.
According to a press statement issued on October 20th, the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) has set a deadline for all cryptocurrency exchanges to comply with the necessary conditions to obtain a Physical Crypto Asset Traders license.
By the final week of November 2024, crypto exchanges currently classified as Prospective Crypto Asset Physical Traders must complete their registration process according to the regulatory guidelines. The regulatory body has made it clear that this extension does not apply to any other crypto exchanges.
The extension is part of the newly revised government bill, Bappebti Regulation Number 9 of 2024.
As an analyst, I find that the recently proposed legislation necessitates cryptocurrency exchanges to forge alliances with local administrative bodies and adopt Know Your Transaction protocols. Additionally, it allows for institutional entities to participate in trading activities on these platforms.
Oscar Darmawan, CEO of major Indonesian crypto exchange INDODAX, expressed his gratitude to Bappebti for giving crypto exchanges more time to adjust to the regulations set by the government.
In his interview with local news channels on October 20th, Oscar expressed that this action would contribute to reinforcing the cryptocurrency sector collectively by making certain that every cryptocurrency exchange adheres to the established guidelines.
As a crypto investor, I understand that INDODAX is undergoing the necessary validation process right now, with the anticipation of receiving approval from Bappebti for its operating license. Rest assured, the team behind this exchange is committed to adhering to all current regulations.
The Chief of Bureau of Legislation and Enforcement at Bappebti, named Aldison, explained that Regulation Number 9 in 2024 will serve as a guide for governing the crypto market within Indonesia. Notably, this regulation now includes institutions interested in dealing with digital assets, which was not previously mentioned in the bill; only individual entities were initially addressed.
“Legal entities and business entities can also become digital asset traders,” added Aldison.
Under the latest rules, it’s necessary for authorized cryptocurrency trading platforms to establish a collaboration agreement with the Indonesian Directorate General of Population and Civil Registration within the Ministry of Home Affairs. This is one of the stipulations they must adhere to.
Moreover, cryptocurrency trading platforms must register with the National Digital Asset Future Trading Exchange and join the Digital Asset Clearing Organization. Failing to do so may result in the withdrawal of their licensing applications.
In a press release dated October 18th, Bappebti intends to construct a dynamic, flexible, and transparent digital currency environment.
Ir. Kasan, head of Bappebti, stated that they will modify the current rules to align with the Commodity Futures Trading Law. Given the rapid and agile nature of the crypto sector, it necessitates a robust and adaptable ecosystem capable of addressing market demands.
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2024-10-21 14:24