Indodax Will Meet CoFTRA's New Rules for Permit Bags

Indodax, platforms crypto asset trading The largest in Indonesia, said it would focus on meeting all the requirements in the new regulations issued by the Commodity Futures Trading Regulatory Agency (CoFTRA) on 12 February.

According to Indodax CEO Oscar Darmawan, his party wants his crypto asset trading platform to have official permission. It is known that currently Indodax is still an ordinary public company under the name PT Indodax Nasional Indonesia.

He admits that there are points that are considered burdensome in the regulation. According to him, the required capital for business actors who want to register as physical traders of crypto assets is still too large.

In the Commodity Futures Trading Supervisory Agency Regulation Number 5 of 2019 concerning Technical Provisions for the Implementation of the Physical Crypto Asset Market on the Futures Exchange, it is stated that (1) Capital for futures companies is Rp. 1,5 trillion, (2) Capital for crypto asset storage is Rp. 1,2. trillion, and (3) Capital for trading crypto assets of IDR 1 trillion.

"Well, we run these three points, that's why we [must have] three permits. Our focus this year is to become a crypto asset trading platform that has an official license,” he said at the Indodax Hurricane Press Conference some time ago.

Oscar admitted that he would continue to have a dialogue with a number of parties including CoFTRA to study the new rules. "We're really trying to get a permit. But [about the rules] we leave it to CoFTRA, we will try comply and continue to discuss," he said.

Currently, Indodax trades more than 30 digital assets, with 1,5 million members in Southeast Asia as of December 2018. Its revenue in 2018 is claimed to have doubled from the previous year. Oscar is aiming for an additional 500 new users this year.

Meanwhile, Indodax Chief Technology Officer William Sutanto revealed that his party is also trying to comply with this new rule in terms of technology. One of them is to meet ISO certification.

In these regulations, a number of ISO certifications that must be met include ISO 27001 (Information Security Management System), and ISO 27017 (Information Security Management System).cloud security) and 27018 (cloudprivacy) if a physical trader of crypto assets uses cloud.

“This year [certification] must be fulfilled. Later there will be further discussions," said William.

Fenomena tokenized economy

One of the concrete implications for cryptocurrencies (cryptocurrency) is the realization tokenized economy in the future. All kinds of physical assets to financial can be converted into tokens in the real world.

President Commissioner of the Indonesian Central Securities Depository (KSEI) Rahmat Waluyanto even predicted that tokenized economy will become a major phenomenon in the world at least in the next 5-10 years.

He said the market capitalization of cryptocurrencies had reached $211 billion in the world as of 2018. Fundraising from Initial Coin Offerings (ICO) has also crossed the $15 billion mark.

Indeed, at this time crypto has not become a legal currency in Indonesia because it is still considered a commodity. This is different from abroad where cryptocurrencies have been traded on the Securities and Exchange Commission (SEC) capital market.

“The token system actually doesn't have much impact, but it creates opportunities and implications, namely strengthening the financial system. In addition, encouraging access to financial inclusion," he said who was also present at the event.