Cryptocurrency is something that is becoming famous with time and different countries are taking different approaches to regulate cryptocurrency in their respective regions. Like many other countries that have taken a friendly approach to regulating cryptocurrency, Indonesia is another such country that has evolved with time about cryptocurrency usage and also accepting the usage of blockchain technology for different purposes. Although there had been resistance while cryptocurrency had just laid in Indonesia, with time the new regulations have made way for the Indonesian citizens to give a chance and invest and trade in cryptocurrency.
The country made headlines recently when it decided to levy taxes on the people that are trading in crypto. It also has some famous crypto exchanges such as Binance, Indodax, Toko Crypto etc. The article is going to talk about the legality, regulations concerning crypto and to what extent one can operate in cryptocurrency. If you want more information regarding this, you can go through the bitcoinevolution to better understand it.
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IS CRYPTOCURRENCY LEGAL IN INDONESIA?
Talking about the crypto’s legal status, it is completely legal in Indonesia and one can entirely and freely operate in cryptocurrency. Crypto usage was made legal in the year 2018 when its Ministry that looks after trading approved the Bitcoin trading and the assets of crypto as good as we otherwise use commodities. The board that is authorized as in charge of blockchain and cryptocurrency is the “Futures Exchange Supervisory Board’ and is responsible to look after the working of crypto in the country.
Most recently in the year 2020, certain requirements about crypto exchange regulation came into being in the country after considering the board’s regulation. It cited certain measures that needed to be considered to protect the fraudulent practices in this space for its traders. Besides being legalized in Indonesia there are still some pitfalls that are there for the community that is operating in it and for its organization. One such problem is its bank that does not consider cryptocurrency as a viable method of payment which poses one measure problem to the people to trade in cryptocurrency. Due to certain prevailing misleading information, people are reluctant to do crypto trading and this is another measure that hinders the growth of cryptocurrency in the country.
Despite these hurdles, the progress of the cryptocurrency has been seen and is prospering in the country to let the crypto industry grow more and more in Indonesia.
REGULATION IN INDONESIA CONCERNING CRYPTO
There are two specific regulations concerning cryptocurrency in Indonesia. Here we are going to discuss in brief these regulations:
The first regulation that came into the country was “BAPPEBTI REGULATION NO. 5 (2019)” that related cryptocurrency with that of a commodity and further highlighted the requirements about the cryptocurrency exchanges in the country.
The second such regulation was “BAPPEBTI REGULATION NO. 7 (2020)” which enlisted the 229 crypto assets as legally tradeable on the crypto exchanges.
These two regulations are the main ones that have discussed cryptocurrency usage.
The bottom line
Hence, the article has strived to bring to your knowledge the legal perspective concerning the crypto operation in Indonesia. It has further spoken about the extent to which it has been adopted by the traders and what are some of the hurdles that are obstructing its growth. The growth more recently has been seen as there are legal framework laid for its operation and future growth that makes it more developed in its nature.
I hope the information discussed in the above-written article gave you or any specific Indonesian person the essential information if you are beginning with your crypto journey in the country. Wish you luck!
