JAKARTA (TheInsiderStories) – Bitcoin and digital gold officially traded in Indonesia under certainty. Commodity Futures Trading Regulatory Agency (CoFTRA) has issued four regulations related to crypto-currencies and digital gold after existed in Indonesian market.
The crypto and digital gold trade underlie in regulation Number 2 Year 2019 concerning the Implementation of the Commodity Physical Market on the Futures Exchange, and regulation Number 3 Year 2019 concerning Commodities that Can Be Subjected to Futures Contracts.
Furthermore, Sharia Derivative Contracts and/or Other Derivative Contracts Traded on the Futures Exchange, regulation Number 4 Year 2019 concerning Technical Provisions for the Implementation of the Digital Gold Physical Market on the Futures Exchange, and regulation number 5 of 2019 concerning Technical Provisions for the Implementation of the Crypto Asset Physical Market on the Futures Exchange.
The regulation followed Trade Minister Regulation Number 99 Year 2018 concerning General Policy for the Implementation of Crypto Asset Trading and Trade Minister Regulation Number 119 Year 2018 concerning General Policy on the Trading of Physical Market for Digital Gold on the Futures Exchange.
CoFTRA Chief Indrasari Wisnu Wardhana said these regulations shows that government continues to keep abreast of the dynamic Commodity Futures Trading industry and always strives to provide space for the development of digital commodity innovation businesses.
“CoFTRA is committed to providing legal certainty and protection for the community, as well as certainty of business in the sector,” she added.
The regulations cover market institution and trade mechanism. As consumer protection, it also covers separate account for savings and the saving management. Moreover, the regulation also stated that dispute can be mediated through Commodity Futures Trading Arbitration Agency or state court.
Digital gold traders are accommodated through institution. Several mechanisms such as trading, installment, printing, or dropping also covered in the regulation. Not only that, traders must implement anti-money laundering and terrorism funding prevention rules.
Bitcoin has been existed in Indonesia’s market since 2011. In 2016, Bank of Indonesia forbids the instrument use as transaction but as commodity it was still blurry.
Cryptocurrencies reached its peak in Indonesia in 2017. But afterwards, the price is in a downtrend due to people’s declining euphoria. Now, on the moment of regulation issuance, Bitcoin price is sluggish, as there is no certain fundamental condition over the crypto-currencies.
Digital gold trading trend came later in the last couple years. Some e-commerce players such as Tokopedia and Bukalapak sell the instrument. IndoGold, Orori, Tamasia, EmasDigi are some other smartphone applications to purchase gold.
The crypto-currencies and digital gold new regulations has blown certainties to digital financial market. According to Bank Indonesia, there is around 300,000 Bitcoin users in April 2018. Meanwhile, there are more number digital gold users and it keeps gaining more attentions by public.
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