Indonesia Approves New Exchange Regulations For Crypto Trading Futures
Indonesia Approves Rules For Crypto Trading Futures
The Commodity Futures Trading Regulatory Agency of Indonesia, together with the national Ministry of Trade, have decided the rules for operating crypto futures in the country. According to the organizations, crypto futures exchanges will need to be approved by the government and properly registered before they can operate in the country.
It was also confirmed that cryptos assets will be officially recognized as commodities in the country’s law. This decision stems from June 2018, when it was first conceived.
Indrasari Wisnu Wardhana, the chief of the regulatory agency, has affirmed that the regulation is being created in order to provide more legal certainty to the sector in the country, which will help to protect investors in Indonesia.
A document that detailed all the information about this new legislation was created and divulged in the country and the agency affirmed that futures exchanges and clearing houses need capital of at least $106 million USD, as they must maintain a closing capital balance of least $85 million USD.
The regulator also requires the companies to have at least three different employees who are Certified Information System Security Professionals (CISSP). These professionals will be responsible for anti-money laundering measures and combating the financing of terrorism using these financial entities.
These companies will also have to follow all the rules for futures traders which were already set up some time ago. Because of this, they need to be approved before operating.
Rules Do Not Apply For ICOs, Initial Capital For Launching Futures Is Deemed To High
About these new rules, the agency has affirmed that Initial Coin Offerings (ICOs) will not need to follow these rules and that cryptos are still not allowed to be used as a payment method in the country.
Crypto traders, according to Reuters, are very unhappy that the need for initial capital is so high, as they believe that this can get in the way of innovation. However, the local authorities argue that this move was made to protect investors.
Oscar Darmawan, the CEO of Indodax, a digital asset company in the country, has affirmed that rural banks, for instance, only need $177,000 USD to get started, so the value is heavily exaggerated.