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.
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