CoFTRA Determines Cryptocurrency to Enter the Commodity Futures Trading Category

After conducting a study for four months, the Commodity Futures Trading Supervisory Agency (CoFTRA) determined that: cryptocurrency (crypto) as a commodity subject that can be traded on the futures trading exchange. As reported by Cash, then cryptos deserve to be categorized or grouped as commodities.

CoFTRA will also make further regulations on the determination of crypto as a commodity, such as the issue of companies exchangers, wallets and mining. This further regulation will involve various ministries and institutions, such as Bank Indonesia (BI) and the Financial Services Authority (OJK). Another thing that will be considered is tax issues which will be regulated by the Directorate General of Taxes in accordance with the request of business actors.

Regarding depositing customer money, CoFTRA will also manage the process. Later, customer or investor funds will not be kept by the company exchanging, but by Futures Clearing or the depository bank for customer funds already in CoFTRA. This is done to prevent the loss of customer funds, either because of the risk of embezzlement by the manager or because of the risk of hacking (hackers).

Other regulations regarding efforts to prevent money laundering and the financing of terrorism or other crimes through cryptocurrencies. PPATK and Police Headquarters will be involved in this matter.

Trading mechanism

CoFTRA will conduct further discussions with the government and ask existing crypto exchanges, such as Indodax or other crypto communities, to make proposals containing contract or product specifications and trading procedures or mechanisms.

The content includes information on what types of cryptocurrencies are traded and price fractions or tick size. Meanwhile, trade rules include trading hours and dispute resolution mechanisms if there are problems between managers and investors or customers.

Cryptocurrency commodities in Indonesia are currently gaining widespread interest. Community trader also easier to find. Generally, they buy and sell cryptocurrencies for investment, considering the price is very volatile.

In Indonesia alone, there are at least three businesses that are trying to facilitate ICO activities, namely Tokenomy, Pundi X, and Vexanium.