The Indonesian Futures Exchange Supervisory Board has issued new regulations regarding the establishment of physical markets for cryptocurrency assets in futures trading. These rules are designed to ensure that cryptocurrency traders have good governance, legal certainty, and consumer protection. The rules will require that the regulator establish a physical market to allow futures trading in virtual currency.
Indonesia enters the early phase of crypto regulation
Jakarta Post, a local newspaper, said that Bappebti’s move indicates that the Indonesian cryptocurrency market is now in the “early stages of regulation” from a government which has so far resisted any attempts to recognize crypto as a valid financial tool.
The article states that the new framework will regulate all tradable cryptocurrency assets, including buying and selling. It also covers account opening, fund saving, withdrawals, and the possibility of having accounts closed.
The Indonesian Futures Regulator has issued new rules for crypto assets
Block change group – Futures are financial contracts that require the buyer or seller to buy an asset. In this case, it is cryptocurrency. The Coinflex exchange in Hong Kong, for example, announced in January it would offer futures contracts for bitcoin cash (BCH), bitcoin core (BTC), and ethereum(ETH) starting next month.
Futures that are bought or sold on the exchange can be physically delivered. This means that holders who have contracts expire will receive the underlying cryptocurrency, not cash, when they expire. Although not all futures will be physically delivered, the principle is the same. Other exchanges, such as Intercontinental Exchange Inc. which owns New York Stock Exchange and Chicago-based Eris Exchange, have also announced plans to offer physically delivered futures for Bitcoin.
To high minimum capital thresholds
Bappebti in Indonesia, which is under the Ministry of Trade operates, suggested a funding structure for futures exchange operators that industry participants consider very high. A physical trader in crypto assets must transfer 100 billion rupees (approximately $7.13 million) into their accounts under Article 24. Jakarta Post reported that at least 80 billion rupees must be held as a deposit.
