The regulation aims to create the ecosystem supporting the functioning of digital innovative business models
On February 18, 2019, an official press release published by Bappebti - Indonesian Commodity Futures Trading Supervisory Agency - reported that the regulator had established a legal basis for functioning of crypto and digital assets futures markets.
Bappebti operates under Indonesian Ministry of Trade, and it has decreed that legal operating of entities involved in crypto futures trading in Indonesia is possible only after their registration and getting regulatory approval.
Let’s remind that the new legislation adopted by the Bappebti back in June 2018 officially recognizes Bitcoin and other digital assets as trading commodities. The new rules include regulation on the adoption of crypto assets as a trading commodities on futures exchange markets, as well as technical provisions for placing digital futures contracts on exchanges.
The new regulatory framework require futures exchanges, as well as clearing houses that offer digital futures trading to pay at least 106 million USD, and keep a minimum closing capital balance of 85 million USD before they could become officially approved for crypto futures trading. Furthermore, storage service providers and crypto futures traders are required both to maintain at least 71 million USD and have a closing balance of no less that 57 million USD. Also, the new rules demands crypto futures exchanges to guarantee compliance with security policies and follow risk management procedures, including compliance with Anti-Money Laundering and combating terrorism financing policies.
The new regulatory framework aims to provide legal certainty in the crypto futures trading field, to protect investors, and to create the ecosystem supporting the development of digital innovative business models.
Author: Alena Snezhnaya