Indonesia Legal Alert: A Regulatory Pole Vault for the Indonesian Crypto-Industry

February 2019 was a tumultuous month for the Indonesian crypto-industry with the introduction of regulations that impose staggering thresholds for minimum capital and closing balance requirements among other stringent qualifying criteria for Crypto Asset Exchanges, Custodians, Clearing Agencies and Traders.

The regulatory rationale advanced by Indonesia’s Commodity Futures Trading Supervisory Authority, “Bappebti” is that in view of anticipated transaction volumes, robust financials are the need of the hour to promote market confidence and accountability.

Having permitted futures trading of crypto assets in late 2018[1], Bappebti issued a significant regulatory framework for the crypto asset futures market[2] on the 8th of February, 2019, close on the heels of another regulation which revised the regulatory landscape applicable to general commodity futures trading[3].

The new regulations impose potentially crippling costs and set a high bar for regulatory compliance on a fledgling industry. Additionaly, the new regulations also set out a quite comprehensive trading mechanism of the crypto asset trading which shall be followed by all of the relevant parties in crypto asset trading.  Should you have any queries or concerns, please do not hesitate to contact our resident digital asset experts.

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