Often ordinary people ask how the legality of Bitcoin is in Indonesia. Check out the following reviews so you know about the legality of Bitcoin in Indonesia.
Bitcoin is Not a Currency
Bitcoin is a crypto asset or cryptocurrency. However, at Indodax.Academy, we call it a crypto asset.
This is because Bitcoin in Indonesia is still not used as a means of payment. Meanwhile, Bitcoin and other crypto assets can be used to buy or pay for a product or service. As in the United States, China and other countries.
The Indonesian government prohibits Bitcoin as a means of payment. This is in accordance with the Bank Indonesia decision has issued on December 7, 2017.
Then, can Indonesian save Bitcoin?
Bitcoin is a Commodity That You Can Save It
Bitcoin can use for trading. Indonesian people can save bitcoin.
In Indonesia, all crypto assets are commodities or goods that can trade. The Indonesian government has issued regulations regarding Bitcoin as a commodity.
This is in accordance with the Regulation of the Minister of Trade (Permendag) No. 99 of 2018 concerning the General Policy for the Implementation of Crypto Asset Futures Trading.
This rule also has more specific child rules. Under the regulation, crypto assets as commodities are monitored by the Commodity Futures Exchange Trading Supervisory Agency (BAPPEBTI).
This is stated in Bappebti Regulation No. 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market in the Futures Exchange. So it is clear the legality of Bitcoin in Indonesia.
The Important Points on Bitcoin Legality
- Bitcoin Cs trading must be done on the Futures Exchange.
- The traded cryptocurrency must be based on distributed ledger technology and be in the form of a utility crypto asset or crypto-backed asset.
- Its market capitalization value is included in the top 500 crypto asset market capitalization (coin market cap) for utility crypto assets and is included in the largest crypto asset exchange transactions in the world.
- Crypto asset trading can be facilitated by the Futures Exchange which has obtained the approval of the Head of CoFTRA. The condition is that the Futures Exchange must have a minimum paid-up capital of IDR 1.5 trillion and maintain a minimum final capital balance of IDR 1.2 trillion.
- The futures exchange must also have at least 3 employees who are Certified Information Systems Security Professional (CISSP).
- The process of refining and settlement of transactions in crypto asset trading must be carried out by a Futures Clearing House that has a capital of at least IDR 1.5 trillion and maintains a final capital balance of IDR 1.2 trillion.
- Bitcoin Cs transactions on the Futures Exchange must be facilitated by physical crypto asset traders or brokers with servers in Indonesia. These brokers are required to have a minimum paid-up capital of IDR 1 trillion while maintaining a final capital of at least IDR 800 billion.
- Brokerage companies must have an organizational structure at least the Information Technology Division, Audit Division, Legal Division, Crypto Asset Customer Complaints Division, Client Support Division and Accounting and Finance Division.
- Cryptocurrency brokers must have an online trading system that is used for trading connected to the Futures Exchange and the Futures Clearing House.
- Brokers must also have a minimum standard operating procedure regulating the marketing and acceptance of crypto assets customers, conducting transactions, internal control and supervision, settlement of Crypto Asset Customer disputes and implementing anti-money laundering programs.
- Crypto asset customers who intend to conduct crypto asset transactions through a physical crypto asset trader are require to place the funds that will use for the execution of transactions in a separate account in the name of the physical crypto asset trader for the benefit of the Futures Clearing House.
- Funds placed must use the Rupiah currency.
Where to Buy Bitcoin?
You can buy Bitcoin and other crypto assets on exchanges or crypto asset brokers that are registered with BAPPEBTI. Only a few have achieved this. One of them is Indodax.
Oh yes. At Indodax, you can also buy Bitcoin starting from IDR 10,000, even though it costs hundreds of millions of IDR. Because Bitcoin can be transacted with decimal fractions.
Why You Should Check the Legality of the Platform?
Indeed, there are many platforms or exchanges that sell Bitcoin in Indonesia. It’s just that, you need to check the legality of the platform. You need to know that the exchanges have registered BAPPEBTI or not.
Why is that? This is important for you so that you can transact or trade Bitcoin safely. So, later on, there will be no problems when trading.
Because the platform is fake or does not have the legality of the Indonesian government, it could commit fraud. When you have made a big profit, your money cannot be withdrawn. Not only that, other fraud modes also often occur on unlicensed platforms.
Oops. It’s scary too.
Hence, you must buy or trade Bitcoin and other crypto assets on licensed platforms or exchanges. So it is clear, the legality of Bitcoin in Indonesia.