The Commodity Futures Trading Regulatory Agency officially establishes the exchange, clearing, and manager of crypto asset storage. Its existence is expected to provide legal certainty while protecting the user community.
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JAKARTA, KOMPAS — The Commodity Futures Trading Regulatory Agency or Bappebti determines the establishment of exchanges, clearing institutions, and managers of crypto assets through a decree agency established on 17-20 July 2023. Its existence is expected to provide legal certainty for industry players while increasing protection for the customer community.
Head of Bappebti Didid Noordiatmoko in a press release, Thursday (20/7/2023), stated, after going through a long process and in accordance with the applicable regulatory provisions, CoFTRA determined the establishment of crypto exchange through a Decree of the Head CoFTRA Number 01/BAPPEBTI/SP-BBAK/07/2023 dated 17 July 2023 concerning Approval as a Crypto Asset Futures Exchange to PT Bursa Komoditi Nusantara.
Bappebti has also issued Decree of the Head of Bappebti Number 01/BAPPEBTI/SP-LKBAK/07/2023 dated 17 July 2023 regarding Approval as a Futures Clearing Institution for Guaranteeing and Settling Crypto Asset Physical Market Trading to PT Kliring Berjangka Indonesia. Another matter regulated by Bappebti is the Management of Crypto Asset Storage through Decree of the Head of Bappebti Number 01/BAPPEBTI/SP-PTPAK/07/2023 dated 20 July 2023 regarding Approval as a Crypto Asset Storage Management to PT Tennet Depository Indonesia.
“The formation of an exchange, clearing, and custody management for crypto assets is evidence of the government’s presence in efforts to create a fair and just ecosystem for trading crypto assets to ensure legal certainty and prioritize protection for the public as customers,” said Didid.
Also read: Crypto Asset Custodians are Expected to Give Safe Guarantees
The agreement between the exchange, clearing, and crypto asset storage management refers to Regulation No. 8/2021 on the Guidelines for Conducting Trading in Physical Crypto Assets in Futures Exchanges, as amended by Regulation No. 13 of 2022. To develop and strengthen the exchange, clearing, and crypto asset storage management, according to Didid, Bappebti requires collaboration from relevant ministries/institutions, especially the Financial Services Authority, Bank Indonesia, the Ministry of Finance, and the wider community.
The agency hopes that the cryptocurrency industry and trade can continue to grow in accordance with the needs of the community and industry. “Physical trading of cryptocurrency assets carries a high risk. Due to their nature, the value of cryptocurrency assets can experience a significant increase or decrease in value quickly. Therefore, a good understanding of the community is needed, including the benefits, potential, and risks of trading cryptocurrency assets,” he said.
In June 2023, there was an addition of 141,800 customers to crypto assets. This increase is considered to show the growing interest of the community to invest in crypto asset trading. As of June 2023, the registered number of crypto asset customers reached 17.54 million customers.
The transaction value of physical crypto assets during June 2023 was recorded at IDR 8.97 trillion, an increase of 9.3 percent compared to the previous month. Meanwhile, the total transaction value for the period of January-June 2023 amounted to IDR 66.44 trillion.
Also read: Incorrectly Arranging Crypto Asset Regulations
Regarding the development, Tokocrypto CEO Yudhono Rawis stated that his team appreciates the action taken by Bappebti in setting up exchanges, clearing houses, and crypto asset storage management. This step is important to strengthen Indonesia’s position as one of the centers of crypto asset trading and innovation, as well as the digital ecosystem in Southeast Asia. Moreover, he added that this crypto exchange will become the first of its kind in the world.
“With a complete ecosystem of the crypto asset industry institution, it is expected to provide legal certainty, transparency, and protection for business actors and investors involved in it. The existence of this institution can also expand public access to crypto assets,” said Yudhono in his statement on Friday (July 21, 2023).”
Yudhono added that the existence of those three institutions is expected to enhance public trust towards the crypto asset industry. In addition to creating clear and integrated regulations, business actors can operate legally and avoid harmful practices.
“In the long term, this can create new opportunities for technological innovation, investment, and sustainable economic development,” he said.
Also read: Protecting Crypto Asset Investors
CoFTRA Sets Exchange, Clearing and Crypto Asset Storage Managers – Kompas.id
