The Regulation of Crypto Asset Trading in Indonesia

The development of information and communication technology has an important role in the progress of the nation. In the current business context, there has been a shift in the way transactions are going digital, where this can be a promising new business opportunity for anyone. The world trend that is currently increasing rapidly is trading the physical market of crypto assets. The popularity of crypto assets in Indonesia is increasingly in demand and there is a lot of demand or supply by the public, especially in the midst of the Covid-19 pandemic.

The physical market trading of crypto assets is always increasing and the market segmentation is very broad, which is indicated by the price of crypto assets that are increasingly soaring. The capitalization value of crypto assets in the world on August 10, 2021, the market cap of all crypto assets or digital assets has touched USD $ 1,852,636,976,343.¹ The price is formed by the market based on the law of supply and demand. These crypto-assets such as Bitcoin, Ethereum, Tether, Binance Coin, Cardano, Ripple and others are a form of New Payment Method in the form of Virtual Currency.

The growth of crypto-assets in Indonesia has been very good, although crypto assets cannot be used as legal tender in Indonesia as regulated in Law No. 7 of 2011 concerning Currency. However, crypto-assets can be used like gold or a store of value. The two most common ways to profit from cryptocurrencies are trading and investing.

The mechanism in this crypto asset game is very simple and seems similar to stock trading (stock buying and selling activities within a certain period of time). Later, every physical trader of crypto assets (trader) will determine the purchase price of the desired crypto and then will also determine the desired selling price. When there is a market agreement by crypto asset customers, transactions for crypto-assets will occur. However, in playing crypto, it takes the right effort of accuracy in order to trade crypto assets so that capital gains or profits can occur.

Crypto can also be said as an investment because usually, he buys when the price is cheap and then sells it at a high price. However, this crypto asset is not similar to an investment product that promises to be profitable. One of the commodities in the field of digital assets that can be used as the subject of Futures Contracts traded on the Futures Exchange is crypto assets. Crypto assets are designated as commodities that are eligible to be subject to futures contracts traded on the Futures Exchange as regulated in the Regulation of the Minister of Trade No. 99 of 2018 concerning General Policy for the Implementation of Crypto Asset Futures Trading.

Crypto asset trading must also pay attention to the principles of good corporate governance, with the aim of establishing a physical market for crypto assets as a means of establishing transparent prices and providing physical handover facilities and being used as price references on futures exchanges, providing legal certainty and facilitating innovation and development of activities. physical trading of crypto assets.

Crypto assets can only be traded if it has been determined by the Head of the Commodity Futures Trading Regulatory Agency (CoFTRA/BAPPEBTI) in the list of crypto assets traded on the physical crypto asset market as stipulated in the Commodity Futures Trading Supervisory Agency Regulation (BAPPEBTI) No. 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market on the Futures Exchange (“BAPPEBTI Regulation No. 5 of 2019”). Traded crypto assets must meet at least the following requirements:

1. Based on distributed ledger technology;
2. In the form of utility crypto assets or crypto-backed assets;
3. The market capitalization value (market cap) is ranked within the top 500 (five hundred) major crypto asset market capitalization (coin market cap) for utility crypto assets;
4. Enter the world’s largest cryptocurrency exchange;
5. Has economic benefits, such as taxation, growing the informatics industry and the competence of experts in the field of informatics (digital talent); and
6. The risk assessment has been carried out, including the risk of money laundering and terrorism financing as well as the proliferation of weapons of mass destruction.

Currently the Indonesian government through BAPPEBTI Regulation No. 7 of 2020 concerning the Establishment of a List of Crypto Assets that can be traded in the Crypto Asset Physical Market, has released or established as many as 229 types of crypto-assets that can be traded on the Indonesian crypto asset physical market. With the issuance of the regulation, only crypto assets registered under the regulation can be traded.

In this case, the government also evaluates existing crypto assets and considers security factors including liquidity. The establishment of a list of crypto assets that can be traded on the physical market for crypto assets has provided legal certainty and protection for players, investors, traders and related institutions in crypto asset trading transactions. So that the optimization carried out can have an impact on the country’s economy and the welfare of the community.

Crypto asset trading can only be facilitated by Futures Exchanges that have obtained approval from the Head of BAPPEBTI. In order to obtain approval to facilitate the trading of such crypto assets, the Futures Exchange must meet the following requirements: a) have a paid-up capital of at least Rp. 1,500,000,000,000.00 (one trillion five hundred billion rupiahs); b) maintain a final capital balance of at least Rp1,200,000,000,000.00 (one trillion two hundred billion rupiahs); and c) have at least 3 (three) employees certified as Certified Information Systems Security Professional (CISSP).

Then the provisions have changed as found in Article 5 Paragraph (2) of BAPPEBTI Regulation No. 2 of 2020 concerning the Second Amendment to the Regulation of the Commodity Futures Trading Supervisory Agency Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Market for Crypto Assets (Crypto Assets) on the Futures Exchange which states that “To be able to obtain approval in facilitating the trading of crypto assets as referred to in paragraph ( 1), in addition to meeting the requirements as stipulated in the BAPPEBTI Regulation which regulates the Organization of the Physical Commodity Market at the Futures Exchange, the Futures Exchange must meet the following requirements:

1. Have a paid-up capital of at least Rp 200,000,000,000.00 (two hundred billion rupiahs);
2. Maintain equity of at least Rp 150,000,000,000.00 (one hundred and fifty billion rupiahs);
3. Have at least 3 (three) employees who are Certified Information Systems Security Professional (CISSP); and
4. Have a reporting system to accommodate trading transactions that occur on Crypto Asset Physical Traders.

In terms of the reporting system under these provisions, it must be examined or audited by an independent and competent institution in the field of information systems with human resources who have Certified Information System Auditor (CISA) in order to obtain approval from the Head of BAPPEBTI.

While still based on BAPPEBTI Regulation No. 5 of 2019, in order to obtain approval to facilitate customer transactions for crypto assets on the physical market for crypto assets, Crypto Asset Physical Traders must meet the following requirements:

1. 1. Have a paid-up capital of at least Rp. 1,000,000,000.00 (one trillion rupiahs);
   2. Maintain a final capital balance of at least Rp 800,000,000,000.00 (eight hundred billion rupiahs);
   3. Has a minimum organizational structure of Information Technology Division, Audit Division, Legal Division, Crypto Asset Customer Complaints Division, Client Support Division, Accounting and Finance Division;
   4. Have an online trading system and/or facility that is used to facilitate the operation of the Crypto Asset Physical Market that is connected to the Futures Exchange and Futures Clearing House;
   5. Have a minimum standard operating procedure (SOP) that regulates the marketing and acceptance of Crypto Asset Customers, transaction implementation, internal control and supervision, settlement of Crypto Asset Customer disputes and the implementation of anti-money laundering and prevention of terrorism financing programs and the proliferation of weapons of mass destruction; and
   6. Have at least 1 (one) certified Information System Security Professional (CISSP) employee.

In addition to fulfilling the above obligations, physical traders of crypto assets are required to carry out notification of any changes to the system, business processes and regulations owned, provide access throughout the system so that it can be used and monitored by BAPPEBTI, attend education and counseling needed for the development of crypto asset trading. , submit periodic reports and participate in every implementation of coordination and cooperation with BAPPEBTI, authorities or other ministries/institutions.

In the event of a dispute between the parties in the implementation of the Crypto Asset Physical Market, the settlement shall first be carried out by means of deliberation to reach an agreement between the parties within the time limit as stipulated in the agreement between the parties. However, if no consensus is reached, the parties in the Physical Crypto Assets Market that are in dispute may resolve through the dispute settlement facility provided by the Futures Exchange within the time limit as stipulated in the agreement between the parties and/or the rules and regulations of the Futures Exchange.

When the means of settlement provided by the Futures Exchange do not reach a consensus, the parties in the Physical Crypto Assets Market that are in dispute can settle through the Commodity Futures Trading Arbitration Board (BAKTI) or the District Court in accordance with the dispute resolution forum stipulated in the agreement between the parties.

In this way, crypto assets have become tradable commodities in Indonesia. The applicable regulations regarding crypto-assets aim to protect the interests of customers and ensure transactions can be carried out safely and encourage crypto asset trading in Indonesia to develop well and rapidly with good governance in the future.

In connection with the list of crypto assets that have been set by BAPPEBTI, currently there are still many cases of fraud, embezzlement, money laundering, and so on. Many have traded these crypto-assets without being officially designated by BAPPEBTI and do not meet the minimum requirements as crypto assets traded in Indonesia.

This crypto product is a product that is highly speculative in nature or commonly referred to as “High Risk – High Gain”, where people must be observant and understand very well about crypto assets that have very high price fluctuations. Crypto price fluctuations follow the global market mechanism widely. In investing in crypto assets, you must also ensure that the funds used are funds for long-term investments.

Therefore, the public is advised to be careful and remain vigilant with investment offers under the guise of crypto assets where all risks that occur in this case will be borne by themselves. So we must understand properly and continue to learn more about the transaction mechanism, its advantages and disadvantages.

All information is provided for educational purposes and is not to be considered as legal advice. Any reliance on the material contained herein is at the user’s own risk.

Herzani Law Firm is a multi-specialty law firm committed to serving individual, corporate and corporate clients. We will always assist, assist and represent clients in dealing with various legal issues, both nationally and globally.

If any further info or question, please don’t hesitate to contact us via the email address at herzani@herzanilawfirm.id or https://herzanilawfirm.id/

Source :

1. • Law Number 7 of 2011 concerning The Currency
   • Regulation of Minister of Trade The Republic of Indonesia No. 99 of 2018 regarding General Policy for the Implementation of Crypto Asset Futures Trading (Crypto Asset)
   • BAPPEBTI Regulation No. 5 of 2019 concerning the Technical Provisions for the Implementation of the Physical Crypto Asset Market in the Future Exchange
   • BAPPEBTI Regulation No. 2 of 2020 concerning the Second Amendment to the Regulation of the Commodity Futures Trading Supervisory Agency No. 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market on the Futures Exchange
   • BAPPEBTI Regulation No. 7 of 2020 concerning Stipulation on List of Crypto Asset that May Be Traded in the Crypto Asset Physical Market
   • https://coinmarketcap.com/, accessed on 12 August 2021