• Login
    • Advanced search
    • Title
    • Channel
    • Module
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
Hogan Lovells Engage 5.6.13
      • Title
      • Channel
      • Module
    • Hit ENTER to search in content
    • Advanced search
    • Login
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
  1. News
  2. Crypto-assets: How are they traded in Indonesia? BAPPEBTI Has Its Say

Crypto-assets: How are they traded in Indonesia? BAPPEBTI Has Its Say

12 January 2022
    • Share by email
    • Share on
    • Twitter
    • LinkedIn
    • Get link
    • Get QR Code
    • Download
    • Print

The worldwide emergence of cryptocurrencies has not escaped the Indonesian government's attention and it has announced its intention to regulate crypto-asset transactions. As the relevant authority to supervise commodities in future transactions, the Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI) has issued Regulation No. 8 of 2021 regarding Guidelines of Crypto-asset Transactions in Future Markets (Regulation 8/2021). We highlight several key points under the regulation which you should note

Index
  1. Types of Crypto-assets
    1. Trading of Crypto-assets
    2. Supervision and Sanction

Types of Crypto-assets

Regulation 8/2021 provides that crypto-assets to be traded in Indonesia;

  1. should be based on distributed ledger technology;
  2. must be in a form of utility crypto or crypto-backed assets; and
  3. have obtained assessment result from BAPPEBTI using the Analytical Hierarchy Process (AHP).

The AHP assessment of crypto-assets conducted by BAPPEBTI are based on several considerations such as; the market cap of the crypto-assets; acknowledgement of the crypto-assets in worldwide transactions; and the economic and risk value of the crypto-asset. In Indonesia, crypto-assets have not yet been recognized as a currency, but rather as assets which can be traded in a future market supervised by BAPPEBTI. As of now, BAPPEBTI has announced 229 types of crypto-assets which are eligible for trading in Indonesia, such as Bitcoin, Ethereum, Tether, and Doge Coin.

Trading of Crypto-assets

Trading of a crypto-asset may only be conducted electronically by crypto-asset traders in a future market as approved by BAPPEBTI. In order to provide crypto-asset trading in the future market, the crypto-asset trader must satisfy several requirements, including; a minimum paid-up capital of IDR80,000,000,000 (approx. US$5.6m); retaining at least 80% equity of the total paid-up capital; an established (i) information technology division, (ii) audit division, (iii) legal division, (iv) customer service division, (v) client support division and (vi) accounting and finance division in its company structure and established trading rules. Once these requirements have been satisfied and the crypto-asset trader has obtained approval from BAPPEBTI to conduct business, the crypto-asset trader can facilitate the following crypto-asset transactions:

  1. sale and purchase of crypto-assets using Indonesian Rupiah;
  2. trading between one or more type of crypto-asset;
  3. storage of crypto-assets owned by the crypto-asset subscriber; and
  4. transfer or assignment of crypto-assets between wallets.

The transaction of a crypto-asset must be made in a crypto-asset subscription agreement which consists of at least (i) the profile of the crypto-assets trader, (ii) potential risk of the crypto transaction, and (iii) trading rules as determined by the crypto-asset trader. The crypto-asset subscriber must be an individual aged 17 or above, have a citizen ID card and/or passport and subscribe to the crypto-assets using their own funds. The crypto-asset transaction must be reported to BAPPEBTI on a daily and monthly basis by the crypto-asset trader.

Supervision and Sanction

In addition to the obligation to report crypto-asset transactions as mentioned above, a crypto-asset trader is also required to submit (i) financial reports on a daily, monthly and annual basis, (ii) business activity reports on a quarterly and annual basis to BAPPEBTI, and (iii) any periodical and incidental reports as required by BAPPEBTI. Meanwhile, any changes to the management, address, company name, share ownership, IT system or trading rules must also be approved by BAPPEBTI.

Other than the reporting obligation as mentioned above, a crypto-asset trader is also required to organize explanatory and educational activities in the form of a seminar, workshop, promotion, training, etc. regarding crypto-asset trading. The materials for such programs must be submitted to BAPPEBTI by no later than five days prior to such event.

Any crypto-asset trader that fails to satisfy the above obligations shall be subject to several administrative sanctions in the form of written warnings, suspension of business activity, and/or revocation of crypto-asset trader registration.

Authored  by  Mochamad Kasmali, Karina Antonio and Fakharsyah Hanif Sugiyartomo.

Contacts
Mochamad Kasmali
Partner
Jakarta
Index
  1. Types of Crypto-assets
    1. Trading of Crypto-assets
    2. Supervision and Sanction
Keywords Crypto, crypto-assets, BAPPEBTI, Indonesia
Languages English
Topics E-Commerce, FinTech, Products Law
Countries Indonesia
Delete Comment ?

Are you sure want to delete comment ?

Get link
Embed
Share by email
Get QR Code

Scan this QR Code to share this content