Digital Future Exchange Becomes Funnel for Six Crypto Companies to Boost Ecosystem

Last week (16/10), a number of digital asset players consisting of Upbit, Indodax, Zipmez, Pintu supported by the Indonesian Clearing House (KBI) and the Jakarta Futures Exchange (BBJ) agreed to establish a new entity called "Digital Future Exchange" that specializes in digital assets.

This stance became "Game changer" make crypto asset climate in Indonesia; so more excited because the targeted ambition is to create a crypto asset trading ecosystem that is compliant with regulations. To be precise, it is the Regulation of the Head of CoFTRA (Perka) Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Market for Crypto Assets on the Futures Exchange.

“The presence of DFX is a dream for players digital asset industry in general, and physical traders of crypto assets in particular. The establishment of DFX aims to create a futures exchange that focuses on digital asset trading, as mandated by Perka No. 5/2019," said Upbit Indonesia Country Counsel Putra Nugraha to DailySocial.

Referring to the regulation that was passed at the beginning of last year, BAPPEBTI stated several technical requirements that crypto players must comply with. These include futures exchanges, physical market for crypto assets, futures clearing institutions, managers of crypto assets depository, physical traders of crypto assets must have a capital of IDR 1 trillion.

Then, prospective physical traders of crypto assets (applicable to new players who want to enter as physical traders of crypto assets) must have a capital of IDR 100 billion, have employees with CISSP and ISO 27001 certification for organizations, and lastly, crypto assets must be signed in. top 500 coinmarket cap.

Putra continued, currently the parties who have expressed their willingness to become DFX shareholders are Upbit, Indodax, Zipmex, Pintu, KBI, and BBJ. Meanwhile, other crypto-asset physical asset market traders have expressed their willingness to become committee members at DFX.

All of the above parties will be involved in making certain decisions in DFX. Participation in DFX is not limited only to physical traders of crypto assets, but is open to other market participants, including relevant market players in the commodity, digital and supporting industries.

“However, this condition is still tentative as we are still waiting for further market developments.”

Currently, BAPPEBTI has only granted operational licenses to 13 exchange companies. The names above are among them. In addition, there are Tokocrypto, Triv, Crypto Prima Exchange, Luno, Akuku, Digital Exchange, Koinku, Bitocoto, and Plutonext Digital Assets.

Separately, in an official statement, representatives from KBI and BBJ expressed their support for DFX. “BBJ is interested in joining DFX [..]. The proposed plan to join DFX has been scheduled to be discussed at the BBJ EGMS at the end of October," said BBJ President Director Stephanus Paulus Lumintang.

Putra was reluctant to specify what DFX's plans would look like in the future. He only confirmed that DFX will start operational activities next year, after obtaining the necessary terms and approvals from BAPPEBTI.

DFX will be a futures exchange regulated under BAPPEBTI, providing a system to facilitate trading of digital assets and digital asset derivatives for members who have obtained regulatory approval.

He stated that, as is the prevailing practice, the shareholders will continue to carry out their business activities as usual. However, DFX has become a self-regulatory organization (SRO) which has duties, authorities, and responsibilities related to digital asset trading, based on applicable laws and regulations.

According to him, an ecosystem like this will solve one of the biggest challenges in the industry, namely gaining trust regarding safe and responsible trading of crypto assets. "To realize that, DFX will implement the latest operating system," he concluded.