Cryptocurrency futures trading have gained a massive traction across the globe. Indonesia government through the Commodity Futures Trading Regulatory Agency (Bappebti) has been busy creating new regulations to streamline the cryptocurrency industry.
New Cryptocurrency Futures Trading
The Commodity Futures Trading Regulatory Agency that works under the ministry of Trade on Monday announced that the introduction of the new regulations. All cryptocurrency futures exchanges will not be required to be accredited and fully registered before they can start offering services in the country.
The agency went further to state that all cryptocurrency assets are now officially categorized and recognized and commodities. This means that investors who have already purchased them can trade them on the national futures exchange.
According to the agency Chief, Indrasari Wisnu, the new cryptocurrency futures trading regulations were created to offer legal certainty in the cryptocurrency futures sector that has shown positive signs of growth over the last couple of months. The regulations will be instrumental in protecting investors as well as consumers from fraud and other elated risks.
The comprehensive document that details the new regulations clearly provides information about the registration requirements and rules that all exchanges are required to meet. In particular, Bappebti states that all futures exchanges as well as clearing houses that deal with digital assets such as bitcoin must have paid-up capital of at least $106 million. This is equivalent to 1.5 trillion Indonesian rupiahs. In addition to this requirement, they need to maintain a closing capital balance of at least $85 million.
Security is one of the main concerns in the cryptocurrency trading sector. All exchanges that want to operate in the country need to put in place robust security systems and have at least three personnel working full time and are certified information system security professionals (CISSP).
A thorough and extensive risk assessment process will be done to ensure that the exchanges abide to the stipulated financing of terrorism compliance and anti-money laundering regulations. Cryptocurrency storage service companies or companies that offer custodian services in the cryptocurrency industry need to also seek approval before operating in the country. They also need to have a minimum paid-up capital of $71 million or 1 trillion Indonesian rupiahs.
Finally, the agency clarified that these new regulations do not apply to initial coin offerings that are widely used to fund new cryptocurrency projects. Most of the cryptocurrency traders in the country have expressed their concerns about the high minimum capital threshold. They are of the idea that the regulations will curtail development of this nascent market significantly. Read more cryptocurrency news here.