Now, the government of Indonesia requires virtual currency traders to hold a deposit around $5.7 million (80 billion rupiahs) among other requirements to be eligible for engaging in futures trading. Subsequently, several sector players have complained this will choke the burgeoning industry.
The new regulations were declared a week ago by the Commodity Future Trading Regulatory Agency, the Indonesian markets regulator.
As per The Jakarta Post, the minimum paid-up capital levels have emerged as a major sticking point, among different requirements. Besides least deposit of $5.7 million, just minimum paid-up capital of 100 billion rupiahs ($7 million-plus) required.
On additional hand, Crypto exchanges need to have a minimum capital of about $70.9 million (1 trillion rupiahs). Moreover, a minimum of paid-up capital near $56.7 million800 (billion rupiahs) will probably be required.
Furthermore, the regulations definitely swell operating costs. Also, the traders dealing in crypto futures could be obliged to use customer support staff. And at least one of these employees required to be considered a certified security practitioner. Crypto futures traders also are obligated to hold transaction records for a minimum of half a decade.
As per Reuters, sector players have complained that necessities searching for crypto futures by BAPPEBTI are much more severe than for other domains. For example, the minimum capital prerequisite exceeds exactly what is demanded when introducing a rural bank. Dealers in futures of commodities besides virtual currencies likewise require considerably lesser minimum paid-up capital – around $177,000.
It is noted that in Indonesia bitcoin and other digital assets are actually banned being a payment solution to years now. Based on previous crypto media reports, the ban was imposed with the Southeast Asian country’s central bank, Bank Indonesia. The governor of Bank Indonesia, Agus Martowardojo, warned that damaging the ban could trigger grave consequences, at that time.