Category Archives: Indonesia

Auto Added by WPeMatico

Asia and Australia: Crypto and Blockchain News Roundup, 1st to 7th June 2018

Asia and Australia

Welcome to our weekly roundup of all important blockchain and cryptocurrency news from around the world. Follow the latest developments in the cryptocurrency space continent by continent, country by country.

Asia

Japan

Fujitsu starts blockchain-based reward points system: Japanese tech company Fujitsu has successfully rolled out a new blockchain-based system for its promotional campaigns like reward points and discount coupons according to a press release issued by the company last Wednesday.

According to the company, the system is going to be deployed across Japan to create awareness among merchants regarding its rewards program and how the promotional activities can be based on blockchain technology.

South Korea

Crypto margin trading to be treated as illegal gambling: The Cyber Crime Division of the South Korea government has declared that margin trading service in cryptocurrency exchanges that are on offer on most systems is equivalent to illegal gambling. The move comes after three Coinone executives involved in margin trading were reportedly close to being arrested because of margin trading.

The groundbreaking announcement was announced after problems arose in the margin trading business of Coinone, one of the largest cryptocurrency exchange in South Korea. In the exchange, users could borrow as much four times as their deposits in the cryptocurrency exchange and could make money or lose some depending on the behavior of the markets.

Supreme Court rules crypto as assets: In a groundbreaking move, the Supreme Court of South Korea has overturned the decision of a lower court and declared that Bitcoin is a recognizable asset. 

The move came after a notorious case last year in which a 33-year-old child pornography suspect was found to have BTC 216 but the government couldn’t confiscate them because the law didn’t recognize them as “tangible assets”.

Vietnam

Government calls for crypto mining equipment ban: The Vietnamese finance ministry has announced that it is proposing banning cryptocurrency mining equipment imports in the country according to government sources.

The latest proposal is seen as a step towards a blanket cryptocurrency ban in the country as the country treats all non-cash payments as illegal and Bitcoin is not yet recognized as cash.

Indonesia

Supervisory board signals green light for Bitcoin futures: The country’s top securities regulator Indonesian Futures Exchange Supervisory Board (Bappebti) has finally designated cryptocurrencies as commodities and they are now available for trading in the future exchange according to latest reports from Coindesk.

The Bappebti was formed in 2005 to regulate the financial market in Indonesia. Jakarta Post posted the news that the governmental commission after an extensive four-month study cleared the way for Bitcoin futures trading in the country.

Philippines

Government looking to blockchain for tax collection: The Philippines department of finance is looking towards blockchain technology for improving tax collection and business improvement initiatives according to latest reports from the Pacific nation.

Paolo Alvarez, the DOF spokesperson said:

“Yes, of course, we are open to exploring blockchain. Secretary (Carlos) Dominguez is really pushing for the application of financial technology. He wants to harness fintech to improve business, for example, payment of taxes online.”

While this is vague, it may be seen as a positive development towards pursuing blockchain-based solutions.

China

Blockchain “checks” to combat fraud being developed by China central bank: Digital Currency Research Lab by Di Gang in People’s Bank of China has announced that is going to use a system capable of issuing blockchain-based checks to combat check-related frauds in the Chinese market.

The tech was the result of a year-long effort initiated by the Chinese government to decrease fraud in the country’s sprawling fintech setup. The country has been suffering from check-related fraud for some time because of a large number of intermediaries that issue checks and it is difficult to legitimize the entire operation.

State TV claims blockchain 10 times more valuable than internet: The Chinese government is banking a lot on the success and application of blockchain technology with the state-run CCTV channel saying that blockchain could be “ten times as valuable” than the internet.

In an hour-long panel in Chinese language by host Chen Weihong, the panelists, including private and public blockchain innovators, termed the technology as exciting and futuristic that will have a lot of worth in the future.

Baidu develops ‘SuperChain’: Baidu has announced the successful development of a new blockchain protocol called SuperChain. The protocol will allow diverse applications of the technology in the future.

Baidu has been at the forefront of the blockchain revolution in the country. It is one of the most popular platforms in the world as 76% of Chinese searches taking place through its search engine rather than Google.

Brunei

Bitcoin as valuable as world’s most valuable currency, Brunei’s 10,000 dollar note: Brunei Darussalam is one of the richest countries in the world according to state wealth and as of right now with Bitcoin hovering around USD 7,420, the cryptocurrency’s unit worth is just about the same as the most expensive currency note: the 10,000 Brunei dollar bill issued first back in December 2006.

While Bitcoin has seen better days, even now the biggest cryptocurrency in the world is equal to the most expensive currency note. The total market cap is, however, less than the tiny East Asian nation’s riches.

Australia

Company loses $6.6 million in crypto: Australian company Byte Power Party has lost over USD 6.6 million worth of cryptocurrencies when a Singapore-based company Soar Labs tried to invest in it without actually paying for it.

The bizarre incident occurred when Soar Labs was found to have a backdoor in its contracts and reportedly froze the coins it had paid to the Byte Power company in exchange for buying 49% of their stake. When Byte Power started selling their coins, Soar found out and stopped the process through the backdoor. Soar will likely be facing criminal charges in the backdrop of this incident.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Asia and Australia: Crypto and Blockchain News Roundup, 1st to 7th June 2018 appeared first on BitcoinNews.com.

Indonesia Gets Green Light for Bitcoin Futures as Supervisory Board Says “Yes”

The Indonesian Futures Exchange Supervisory Board (Bappebti) is reported to have been given the green light for cryptocurrencies to be traded on the country’s futures exchange, having finally been designated as commodities, writes Coindesk.

Bappebti is an agency that was launched in 2005 to regulate certain sections of the financial services industry in Indonesia. It stands for Badan Pengawas Perdagangan Berjangka Komoditi, or the Indonesian Commodities and Futures Trading Regulatory Authority. It is the only agency with regulatory responsibility for various financial institutions. It operates under the supervision of the Indonesian ministry of finance and is managed by a board of administrators, all of whom are selected by the government from industry experts.

Jakarta Post reported on Monday that Bappebti’s market supervision chief Dharma Yoga confirmed the decision after a four-month study, which now clears the way for Indonesia’s launch of Bitcoin futures in Indonesia. Further details will be released by the country’s central bank shortly highlighting regulations concerning crypto exchanges and taxation issues.

This news represents a major turnaround in the fortunes of Indonesia’s crypto space as it was only last year that the central bank stated that it did not recognize Bitcoin as a legal payment system, although exchanges were not mentioned in the bank’s official statement. Further to this development, Yoga has indicated that the agency is requesting domestic crypto exchanges to submit their own regulatory proposals.

As the world’s fourth most populous country, Indonesia is essentially a cash-based economy with up to 80% of the population choosing not to use the banking system. This would seem a perfect ingredient for the establishment of a crypto-based economy, but clearly, the word isn’t out as yet. However, growth within the crypto space is growing according to Forbes.

Oscar Darmawan, CEO of Indonesia Digital Asset Exchange, has reported “exponential growth” in users of his platform over a period of two years from 50,000 members in 2015 to 500,000 members to August of 2017. According to Bloomberg, the exchange will have 1.5 million members buying and selling digital currencies such as Bitcoin, Ethereum, and Ripple by the end of the year.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Indonesia Gets Green Light for Bitcoin Futures as Supervisory Board Says “Yes” appeared first on BitcoinNews.com.

Global State Bank Crypto Adoption Still in Its Infancy

With banks increasingly switching on to the current global interest in cryptocurrencies, digital currencies are now being utilized by the same institutions they were designed to subvert, writes Cointelegraph.

More and more banks around the world see blockchain as a panacea to banking issues, all long overdue for improvement and update. They are realizing that, due to today’s already digitalized banking, which has changed the nature of payment and storage of monies, the technology behind Bitcoin clearly has a place within global financial systems.

Only a fraction of money is paper money bills in circulation, and current digital systems lack speed, stability and security. This, coupled with customer demand, as in the case of Goldman Sachs’s adoption of a digital dollar recently, is driving many nations to consider or actively support central bank cryptocurrency.

Governments and central banks from India, Japan, Canada, Russia, Switzerland to Singapore and the Marshall Islands are all currently looking into a government-backed digital currency. Several other governments, including China, Estonia, and Iran, have discussed plans for their own digital currency. Of these, the Marshall Islands have taken one step further and plan to issue its own cryptocurrency that will be circulated as legal tender along with the US dollar.

Singapore has project UBIN and the Bank of Canada has Project Jasper, while the United States is toying with the idea of a FedCoin. Last year, in the Middle East, the Bank of Israel was considering a digital Shekel.

In Sweden, many retail stores no longer accept paper money and some Swedish bank branches no longer disburse or collect cash. In response, the Riksbank has a current project in progress examining the viability of an e-Krona for retail payments.

Crypto-friendly Switzerland is looking towards the viability of a Swiss National Bank (SNB) e-Franc, but has little support within the Swiss government. The often controversial Venezuelan Petro, seen as both an economy saver and possible sanction breaker, was launched in February 2018 to supplement the plummeting bolivar fuerte, reportedly backed by the nation’s oil reserves.

In Russia, deputy minister of economic development Oleg Fomichev suggested the proposed CryptoRuble, conceived in a climate of heavy anti-crypto sentiments regarding adoption by private companies but nonetheless in state hands, becoming another powerful sanction breaker in the current political climate. Russian president Vladimir Putin stated that the Stone Age has not ended because humanity has run out of stones, but because new technologies have appeared.

“If if central banks were to back cryptocurrencies, the central banks would be better positioned to predict money demand and therefore adjust supply accordingly,” writes Mohamed Damak of S and P Global, adding, “It is still too early to tell in which direction this instruments will move.”

Alternatively, he writes, “If cryptocurrencies were to take off and become an effective currency issued in a decentralized manner, the impact on monetary policy implementation would be deep, since central banks might lose their ability to control the money supply.”

It is a view more closely aligned to Satoshi Nakamoto’s original vision.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Global State Bank Crypto Adoption Still in Its Infancy appeared first on BitcoinNews.com.

Asia and Australia: Crypto and Blockchain News Roundup, 4th to 10th May 2018

Asia and Australia

Welcome to our weekly roundup of all important blockchain and cryptocurrency news from around the world. Follow the latest developments in the cryptocurrency space continent by continent, country by country.

Thailand

Government levies taxes on crypto despite opposition: Thailand is the latest country to levy taxes on cryptocurrencies despite opposition at home. Thai blockchain associations were against the aggressive tax policy and the move follows the regional trend of crypto taxes after Australia and other nations levied taxes on crypto gains.

The ministry of finance had already released plans to introduce taxes for cryptocurrency trading and investment.  Thai digital currency associations voiced their concerns regarding the move and the minister responded but the move eventually took place.

The proposed 15% tax is considered stifling for the growth of cryptocurrencies and blockchain space. In addition to this basic levy, a 7% value-added tax is also levied on all cryptocurrency trades. The legislation is still in its infancy and the government has no infrastructure in place to audit the crypto taxes.

Stock exchange launches crowdfunding blockchain: The Stock Exchange of Thailand (SET) has announced the launch of a decentralized crowdfunding platform based on blockchain to facilitate small businesses and enterprises in the country.

The platform is named LiVE and has plans to provide a complete startup ecosystem which will also provide the necessary education for new businesses to get easier access to institutional investors as well. More than 50 companies are targeted to join the program.

China

Police announce blockchain-based evidence storage: The Chinese ministry of public security has announced the development of a blockchain application that stores evidence from police investigations safely and securely for long-term. The tech was patented at China’s Intellectual property office back in November 2017 and it automatically takes police data and stores it in cloud storage.

This will help solve the problem of falsified records and fake evidence, according to Chinese authorities since blockchain technology can help data become tamper-proof. Criminals will no longer be able to easily hack into the government databases and wipe out the records.

600 Bitcoin mining rigs believed to be from Iceland seized in China: Police in the city of Tianjin, China have seized a record 600 Bitcoin mining rigs in a raid, which is the same number of machines that were reportedly stolen in Iceland heists back in December and January.

The mining operation had caused a short circuit due to stealing power from the national grid after authorities found out that there was a sudden 28% increase in power consumption on one line alone.

India

Crypto exchanges challenge banking restrictions in top court: Indian cryptocurrency exchanges have challenged the central bank’s decision to stop facilitating the transactions of Bitcoin and other cryptocurrencies.

This is the third challenge to cryptocurrencies in the market and the most severe as all banking services have been blocked off to the crypto exchanges and they include big local names like Coindelta exchange, Koinex exchange, Throughbit Exchange and CoinDCX.

The petitions will likely be heard in India’s top court on 11 May 2018.

Taiwan

Binance CEO sees ICOs as future of VC: The CEO of popular cryptocurrency trading platform Binance has stated that he believes initial coin offerings (ICOs) are the future of venture capital investments. Changpen Zhao, the CEO believes that the digital crowdfunding method is not just a “good-to-have” option but a genuine future for the system.

Binance is currently based in Taiwan after previous operations in China and Japan.

South Korea

Regulators positive about crypto: The new head of the Korean State’s financial watchdog Financial Supervisory Service (FSS) Yoon Suk-heun has made some encouraging comments regarding the future legislation around cryptocurrencies.

He at least admitted that cryptocurrencies have “some positive aspects” and could have a part in the future. This seems that the confrontational situation has so far dialed down below the 38th parallel since last September’s ban when regulators had “serious doubts” about cryptocurrencies.

The top regulator also said, “there are a lot of issues that need to be addressed and reviewed. We can figure them out but gradually.”

Japan

FSA crackdown on anonymous exchanges and crypto businesses on the cards: Japan continues its love-hate relationship with cryptocurrencies with the Financial Security Agency (FSA) mulling actions against anonymous cryptocurrency exchanges and startups in the country.

It is also trying to see the exchanges delist currencies like ZCash, Monero and Dash, something that goes far beyond the normal crypto regulations that we have gotten used to in the Land of the Rising Sun.

Indonesia

Private and public sectors encouraged to apply blockchain technology: The South East Asian country is encouraging both the private and public sectors to invest in blockchain technology to solve complex problems that are plaguing the country including storage and application of data according to latest reports from Reuters.

The country is a challenge to administer as 250 million inhabitants are spread over a total of 17,000 islands. The Financial Services Authority has assembled a team and they are investigating the applications of the technology for the future.

Singapore

Physical Bitcoin smart banknotes launched: Singaporean Bitcoin startup Tangem has announced a physical Bitcoin banknote at a popular shopping center in the island state. The banknotes are available in denominations starting from BTC 0.01 btc onwards. Each note has a chip that cost the company USD 2 to make and it stores the private keys.

It is the first hardware solution in the form of banknotes with certification for its entire hardware and electronics according to EAL6+ and EMVCo standards. The company is committed to “radically improve the simplicity and security of acquiring, owning, and circulating cryptocurrencies for both sophisticated and incoming users”.

Tangem has a presence in South Korea and Southern China, Taiwan, Russia, and Israel.

Australia

Government earmarks $700 million for blockchain research: The Australian budget has recently unveiled an allocation of USD 700,000 for the blockchain Space to “to investigate areas where blockchain technology could offer the most value for government service”.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Asia and Australia: Crypto and Blockchain News Roundup, 4th to 10th May 2018 appeared first on BitcoinNews.com.

Indonesia Gets Data Savvy with Blockchain Plans

South East Asia‘s largest economy, Indonesia, is seeing both public and private sectors investing in applying blockchain technology to address issues surrounding the storage and application of data within the country in a number of sectors, reports Reuters.

The problems have arisen due to the sheer volume of data, which is now generated by a population of 250 million inhabitants across a huge total of 17, 000 islands. The Indonesian Financial Services Authority has now gathered a team to investigate how blockchain can support the country’s industries.

Tech firm Online Pajak has launched a solution via a blockchain-driven app to assist in simplifying the country’s tax sector. The app allows customers to share encrypted data with the tax and treasury office as well as banks. Company founder, Charles Guinot, points out that the app will not only reduce paperwork and errors but fill current gaps in the current system.

He suggests: “Today in Indonesia, there’s no proof you’ve paid.” The new system will ensure an accurate and clear record of payment for private individuals and companies alike.

Elections is another area being looked at, having been a problem within the country in the past due to fraud and polls not being able to reach a population that is widely dispersed across Indonesia’s many islands. An Australian firm, Horizon State, has found a solution to some of these problems with a new app concept due to launch later this year, enabling direct polling on local policy issues.

Banks are looking at DLT with more interest, as discovered by a survey published last year indicating that about 80% of financial institution executives see blockchain impacting future markets. Rico Ustahavia Frans, director of digital banking and technology at Bank Mandiri, Indonesia’s second-biggest bank by assets, said it was currently looking at applying blockchain, once regulators had formulated guidelines for banking and financial institutions.

The Indonesian government reports that is now looking into how it can disperse funds to numerous recipients in the farming sector using the new technology.

 

*Follow BitcoinNews.com on Twitter at @BitcoinNewsCom*
*Telegram Alerts from BitcoinNews.com at https://t.me/bconews*

 

The post Indonesia Gets Data Savvy with Blockchain Plans appeared first on BitcoinNews.com.

Bitcoin Permissible Under Islamic Sharia Law, Claims Scholar

Mufti Muhammad Abu Bakar, a sharia advisor and compliance officer at Blossom Finance in Jakarta, Indonesia, has published a paper that indicates that the purchasing of Bitcoin by Muslims can be permitted (Halal) in certain situations.

These comments by come at the end of a week that saw the annual Sharia conference of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) take place in Bahrain. At this conference, leading Islamic finance scholars have been discussing whether there is a place for cryptocurrencies under Sharia Law and whether Islamic financial firms can invest in the cryptocurrencies alongside the rest of the world.

Discussed at the conference is whether new currencies such as Bitcoin fell into the ribawi category, as do gold and silver.  According to Islamic law, items falling under the ribawi category must be exchanged in equal measure and with immediate transfer of possession, otherwise, transactions may involve riba or usury, a major prohibition in Islam.

This argument is key to any decision that might be taken in the future regarding the permissibility of virtual currencies in the Muslim world, as the buying and selling of Bitcoin could be viewed as a type of usury due to its huge profit and loss margins.

The declaration by Mufti Muhammad Abu Bakar that Bitcoin could be compliant with Sharia law has been suggested by some commentators as one possible reason for the hike in the price of Bitcoin over the past 24 hours, as it opens up the market to Muslim investors unsure about their position regarding trading in the digital currency.

An excerpt from Abu Bakar’s paper read:

In Germany, Bitcoin is recognized as a legal currency and therefore qualifies as Islamic money in Germany. In countries such as the US, Bitcoin lacks official legal monetary status but is accepted for payment at a variety of merchants, and therefore qualifies as Islamic customary money.”

As the fastest growing religion in the world, with Muslims now representing 23% of the world’s population, Bitcoin has become an important issue for financial authorities. Last year, the International Monetary Fund (IMF) held its first formal discussion about Islamic banking needs.

 

The post Bitcoin Permissible Under Islamic Sharia Law, Claims Scholar appeared first on BitcoinNews.com.

Indonesia’s First Blockchain Association Launches, Pushes For Fintech Regulation

The world’s fourth most populous nation today launched its first formal blockchain association, Asosiasi Blockchain Indonesia (ABI), at a press conference in the capital, boosting hopes that the Southeast Asian country may yet embrace blockchain technology.

Formed by six blockhain-related organizations with operations throughout the archipelago, the association aims to facilitate the adoption of blockchain technology in Indonesia by accelerating understanding, utilization, advancement and technological inventiveness in relation to the fourth industrial revolution.

Advocating structured blockchain regulation

During the press conference, it said that its early focus will be to work together with government and non-government institutions to assess, formulate and advocate policies for regulatory systems that would support blockchain development.

ABI supervisory board member Yos Ginting explained that despite its huge potential in Indonesia, blockchain companies operating in Indonesia currently faced challenges with the lack of a formal regulatory system relevant to modern financial technology: “This organisation was formed in order to become a platform for industry players so that they can serve as partners for the regulator and government in figuring out the most beneficial regulation.”

Its founding members are Blocktech Indonesia, Blockchain Zoo, INDODAX (formerly bitcoin.co.id, the largest exchanger in the country), Indonesian Blockchain Network, exchanger Luno, and Point-of-Sale (PoS) network PundiX.

Spreading awareness about blockchain benefits

ABI interim chairperson, also INDODAX CEO, Oscar Darmawan, acknowledged that blockchain technology and  cryptocurrency had an unclear status in Indonesia, with much of its society still having misconceptions about the two.

Despite Bitcoin getting negative press in the country in late 2017 when central bankers warned about its threat to the national currency, issuing bans on Bitcoin transactions, Darmawan said that more government agencies are looking into blockchain solutions to implement in business operations.

“The association aims to list industry players who are implementing the technology in Indonesia, so that we can build it into data that we can offer to the government,” he said.

Earlier in January, Bank Indonesia was reported by national daily Kompas to have been working on issuing a blockchain-based digital payments system to improve efficiency, while national postal service Pos Indonesia launched a current account service app built on blockchain, Digiro.in.

ABI is a member of the Indonesian Chamber of Commerce (KADIN Indonesia).

 

 

 

 

The post Indonesia’s First Blockchain Association Launches, Pushes For Fintech Regulation appeared first on BitcoinNews.com.