Bappebti Issues Circular to Regulate Crypto Asset Ecosystem

The Commodity Futures Trading Supervisory Agency (Bappebti) issued Circular Letter Number 47/BAPPEBTI/SE/03/2024 concerning Confirmation of the Implementation of the Physical Market for Crypto Assets on the Futures Exchange.

This SE is confirmation of optimizing the crypto asset ecosystem in the implementation of physical market trading for crypto assets on the Futures Exchange. This is also one of CoFTRA's efforts to encourage the performance of crypto asset trading in Indonesia and create a transparent, effective and efficient crypto asset ecosystem.

"[..] it is hoped that the crypto asset ecosystem will strengthen protection for customers/the public from illegal investments and at the same time can provide business certainty for crypto asset market players," said Plt. Head of CoFTRA Kasan in an official statement, last week (21/3).

Kasan continued, CoFTRA continues to strive to encourage the ecosystem to run in accordance with statutory regulations and to encourage transactions. Previously, Bappebti has established a crypto asset exchange, two crypto asset clearing houses, and two institutions repository in 2023-2024.

Head of the Legislative Regulations and Enforcement Bureau, Aldison, explained that the SE is an implementation of CoFTRA Regulation Number 8 of 2021 concerning Guidelines for Organizing Physical Market Trading for Crypto Assets on the Futures Exchange.

"This is an affirmation to business actors in the field of physical crypto asset market trading who have obtained permits from CoFTRA so that the implementation of the physical crypto asset market in Indonesia becomes a reliable and transparent means of commodity trading. "Primarily, providing optimal protection for people who are crypto asset customers," added Aldison.

This SE conveys four things, including:

1. Institutions to support the implementation of physical market trading of crypto assets on the Futures Exchange which have obtained permission from CoFTRA, so far there are five companies: PT Bursa Komoditi Nusantara, PT Kliring Berjangka Indonesia, PT Kliring Komoditi Indonesia, PT Tennet Depository Indonesia, PT Kustodian Koin Indonesia. In sequence they are a crypto asset exchange, two crypto asset clearing institutions, and two depository institutions.
2. Parties who have registered as Prospective Crypto Asset Physical Traders (CPFAK) from Bappebti are expected to immediately submit a letter requesting approval as Crypto Asset Physical Traders (PFAK) to Bappebti.
3. Parties who already have a registered mark as CPFAK must pay attention to the deadline for fulfilling the requirements to become a PFAK.
4. Institutions in the crypto asset physical market trading ecosystem that have obtained permits to immediately carry out their duties and functions in accordance with legislation.

Continuing further, 2024 is an important momentum for the implementation of crypto asset trading in Indonesia. Marked by the regulation of Law Number 4 of 2023 regarding the authority to regulate and supervise crypto assets, it will shift from Bappebti to OJK in 2025.

“Now is a crucial period regarding the transfer of authority for crypto assets from CoFTRA to OJK. Bappebti wants to ensure that the transfer will run smoothly without shaking up the crypto asset industry. "One of them is by ensuring that the current crypto asset ecosystem is running and encouraging the growth of the crypto asset industry in Indonesia," added Bappebti Secretary Olvy Andrianita.

Olvy also said that this year is also important because it is estimated that the prices of the majority of crypto assets will rise in line with the phenomenon halving Bitcoin is what drives transactions to become more vibrant. “All crypto asset institutions must immediately carry out their duties and functions. "This is so that physical trading of crypto assets in Indonesia will grow significantly," he added.

Development of crypto asset transactions

The value of physical trading transactions for crypto assets in February 2024 was recorded at IDR 33,69 trillion or an increase of 56,22% from the previous month. Meanwhile, the total transaction value for January-February 2024 was IDR 55,26 trillion or an increase of 113,05% compared to the same period in 2023 of IDR 25,94 trillion (yoy).

The number of registered crypto asset customers as of February 2024 was 19,18 million customers, with an average increase in the number of registered customers of 427,2 thousand customers per month since this data was reported in February 2021.

There are 2024 thousand customers actively making transactions on the CPFAK platform for the period February 715,6. Currently, there are 35 registered CPFAK companies and most of them are in the process of becoming PFAK.

The types of crypto assets that are mostly transacted based on transaction value in physical trading of crypto assets during February 2024 are Tether (USDT), Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Render Token (RNDR).