Bappebti Makes Adjustments to Crypto Rules, Prioritizing Legal Certainty and Protection

The Futures Trading Supervisory Agency (Bappebti) made adjustments to the rules and increased the list of crypto assets traded in Indonesia to 501. This is contained in a new regulation regarding crypto asset trading in Indonesia, namely PerBa Bappebti Number 4 of 2023 concerning Establishment of a List of Crypto Assets Traded in Crypto Asset Physical Market.

Head CoFTRA Didit Noordiatmoko in an official statement revealed that this rule was passed to meet the needs of crypto asset trading and provide legal certainty and protection for the public in transactions. These adjustments have been defined and come into effect from June 9, 2023.

PerBa Number 4 of 2023 is said to replace the previous regulation, namely PerBa No. 11 of 2022 which was issued on August 8, 2022. This adjustment adopts the approach positivelist which aims to minimize the risk of trading types of crypto assets that have no clarity whitepaper or for illegal purposes such as money laundering and so on.

In determining the list of crypto assets, CoFTRA collaborates with associations and business actors, so that the valuation process will be faster and more accurate. Apart from that, to provide legal certainty, CPFAK will do the same listing or delisted the type of crypto asset that has been determined must first submit a written notification to the Head of CoFTRA.

One of the crypto asset trading platforms in Indonesia, Tokocrypto, is also involved in this assessment process. Through Rieka Handayani's VP Corporate Communication, the company expressed its appreciation for CoFTRA's steps in issuing this latest PerBa. He sees this as an important step to strengthen the regulatory framework for crypto assets in Indonesia.

"We view this initiative as an important step in strengthening the regulatory framework for crypto assets. This list provides clarity and legal certainty to industry players and users of crypto assets. As well as providing better protection and increasing confidence in trading crypto assets," he said.

Prioritize legal certainty and protection

While regulators are trying to form a healthy and safe crypto asset ecosystem, bad news keeps coming from the global realm. Most recently, the United States Securities and Exchange Commission (SEC) sued crypto exchange companies, Binance and Coinbase, for alleged embezzlement of customer funds and serious securities regulatory violations.

The Indonesia Fintech Society (IFSOC) opened up about this. He views that the Binance and Coinbase problems, as well as a series of crypto asset problems, are a serious warning to the country's crypto ecosystem and governance. What's more, Binance has exposure big in Indonesia.

As is known, one of the crypto asset trading platforms, Tokocrypto, has been official acquired by Binance. The company announced a complete organizational restructuring following the addition of ownership by Binance as the company's majority shareholder. Tokocrypto also cut employees (layoffs) the second volume with up to 58% adjustment.

This event certainly influenced how investors perceive crypto assets. This encourages the regulators to take various preventive measures to ensure that the same incident does not recur in Indonesia.

IFSOC Steering Committee Chair Rudiantara revealed that Indonesia has shown one concrete step in responding to crypto developments going forward, namely by integrating crypto regulations with the national financial sector through the Financial Sector Development and Strengthening Law (UU PPSK).

"Through the PPSK Law, especially at the Financial Services Authority (OJK) there will be a Board of Commissioners that specifically regulates crypto assets, so in the future we hope that the regulation and supervision of crypto assets will be more comprehensive. This will also encourage the development of the crypto market and optimize its impact on the financial sector and the national economy," added Rudiantara.

On the other hand, IFSOC Steering Committee Member Tirta Segara emphasized the urgency of having regulations and investor fund protection schemes. According to him, this will serve as a milestone and a clear reference to the platform regarding the limitations of managing investor funds.

According to Tirta, as has been implemented in the capital market area, crypto industry platforms and players should also not be allowed to accommodate, divert, and even more so invest funds that are managed haphazardly with high risk without permission. This is very crucial in improving the aspect of consumer protection in the crypto area.

He also said that there is a need to strengthen the institutional aspect in the crypto market so that existing functions that may experience conflicts of interest can be properly segregated: roles as traders, brokers, custodians, etc. "This segregation of institutional functions in the crypto market is urgent to be carried out immediately to realize good governance in the crypto market," he stressed.

Crypto exchange targets

In Indonesia itself, the government is targeting the launch bursa trading crypto assets in 2023. Crypto exchanges will become an open platform for relevant stakeholders by prioritizing comprehensive consumer protection and creating a safe crypto ecosystem.

CoFTRA admits that they will continue to review crypto innovations that are occurring on the market. They will also review crypto assets at least once a year exchange or platforms available in Indonesia to see whether the legal status is still appropriate or not.

So far, there are 28 prospective physical traders of crypto assets (CFAK) who have obtained operational licenses from CoFTRA. One of the newest crypto asset trading startups that has also received funding from AC Ventures is River,  rebrand from my Account.

In addition, CoFTRA also noted that the value of crypto transactions throughout 2022 reached IDR 306 trillion, where this value decreased by 64% from the previous year which reached IDR 859 trillion. Even so, the number of Crypto Investors in Indonesia in 2022 will reach 16,7 million people, an increase of 45% from the previous year which reached 11,2 million people. With an increasingly large number of investors, the potential for crypto growth in Indonesia is of course still large.