Indonesia’s Blockchain for charity Regulator Issues a New Rule for Crypto Assets

Blockchain for charity

 

 

 

New regulations have been announced by the Indonesia Futures Exchange Supervisory Board, (Bappebti), regarding the creation of physical markets in futures for crypto assets. The regulations focus on consumer protection, legal certainty, good governance and transparency for cryptocurrency traders. They also require that the regulator create a physical marketplace for futures trading of virtual currencies.

 

Indonesia enters the first phase of crypto regulations

 

Jakarta Post, a local newspaper has reported that Bappebti’s actions signal that the Indonesian cryptocurrency sector is entering the “early phase of regulation” with a government that has resistively tried to recognize crypto as legitimate financial tools.

 

The Blockchain for charity article states that the new framework will also regulate all crypto assets, including the buying and selling of them. This includes account opening, fund savings, as well as withdrawing cryptocurrencies in fiat or non-cash terms.

 

Indonesia’s Futures Regulator Issues a New Rule for Crypto Assets

 

Futures refer to financial contracts which compel the buyer or seller of an asset to purchase it. In this instance, the seller must sell cryptocurrency at a certain future date and price. In Hong Kong, Coinflex exchange announced that it planned to start offering futures contracts starting next month for bitcoin core (BTC), Bitcoin cash (BCH), and Ethereum (ETH).

 

Futures purchased and sold on the Exchange will be delivered physically. When contracts expire, holders of futures will be paid the underlying cryptocurrency. While not all futures can be delivered physically, the general concept is still the same. Other exchanges like Intercontinental Exchange Inc. (which owns the New York Stock Exchange) and Chicago’s Eris Exchange have announced plans for physically delivered futures.

 

Too high minimum capital threshold

 

Bappebti Indonesia, an organization that operates under the Ministry of Trade has proposed a funding mechanism for futures traders. This was in response to concerns expressed by local industry members about the high cost of operating futures exchanges. The new regulations stipulate that a physical trader or crypto asset trader must transfer 100 billion Rupiah (approximately $7.13 Million) to their accounts. Jakarta Post reported that the deposit must not exceed 80 billion rupiah.