$70 Million USD Capital Requirement To Start Bitcoin Futures Creates Rage In Indonesia
$70 Million USD Capital Requirement To Start Bitcoin Futures Sparks Rage In Indonesia
If you ever wanted to launch a crypto futures business in Indonesia, you better be rich. The local watchdog has stated recently that brokers needed $70 million USD in order to launch a Bitcoin futures business in the country. The amount of money is basically insane, which has enraged several crypto businessmen after the announcement.
This follows new regulations which started to be used last October. While originally it was deemed to be a decent law, the community was enraged because the amount of money is simply too big. To start a traditional commodity business in the country, a company would need only $178,000 USD, that is not even 1% of what is being asked.
According to local media outlets, this latest addition to the bill was added by the local Commodity Futures Trading Regulatory Agency, but it was not a part of the original plan, which surprised all of the people involved in the industry.
The CEO of a local crypto exchange called Indodax, Oscar Darmawan, has affirmed that this is more money than it is needed to open a rural bank and that this kind of insane regulation will actually get in the way of industry growth, since no futures company will be launched unless they have this huge amount of money.
Unfortunately, Indonesia is rather conservative when it comes to cryptos. Despite the country’s financial regulator greenlighting crypto trading, the country is still moving at very slow steps and some users are concerned with the future of the industry in the country because of this.
Some other countries in the region like Singapore are way more receptive to cryptos, so the regulators will have to make an effort if they do not want the country to simply stop being an interesting location for investors.