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Jakarta Post

Cryptocurrencies decided as future trading commodity  

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, June 4, 2018   /   12:06 pm
Cryptocurrencies decided as future trading commodity   Gold-plated souvenir coins representative of bitcoin are arranged for a photograph. Bitcoin uses peer-to-peer technology to operate, with no central authority or bank involved. (AFP/Justin Tallis)

The Trade Ministry's Futures Exchange Supervisory Board (Bappebti) has decided cryptocurrencies would be future trading subjects or commodities at the bourse, even though Bank Indonesia (BI) does not recognize such currencies as payment instruments.

“The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse,” said head of Bappebti market supervision and development bureau Dharma Yoga as reported by on Sunday.

Dharma said the decision was made after the board was conducting a study on the matter in the last four months with a conclusion that cryptocurrencies deserved to be considered commodities.

The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation and prevention of money laundering and terrorism financing, said Dharma.

He said the issuance of the regulation would involve a number of institutions like BI, the Financial Services Authority (OJK), the Taxation Directorate General, the Financial Transaction Reports and Analysis Centre (PPATK) and the National Police’s Densus 88 counterterrorism squad.

Dharma added that in line with the government’s efforts to issue the regulation, Bappebti also called on existing crypto bourses like Indodax and Crypto Community to submit their proposals on the product specification and the trading procedure.

The product specification will, among others, include information about type of cryptocurrencies and tick size of the trading instrument, while the procedure will include the trading hours and dispute settlement mechanism, he said.

“We call on the bourses to prepare concrete proposals on the issue,” he added. (bbn)