Indonesian Regulators Officially Legalize Bitcoin as Tradable Commodity

By Jenny Aurora | February 19, 2019
Indonesian Regulators Officially Legalize Bitcoin as Tradable Commodity

Authorities in Indonesia officially recognizes Bitcoin and other cryptocurrencies as commodities, thus offering legal support for trading cryptocurrencies.

The Indonesian Trade Ministry Futures Exchange Supervisory Board (Bappebti) issued regulation No.5/2019 that authorizes local crypto trading and provides set of compliance rules for all exchanges.

Bitcoin exchanges is now required to implement IT security services and store transactions data for a 5-year period. Also, their organizational structures must be well-defined with departments like legal, audit, client support, IT, etc.

“We want to give protection to people who want to invest in crypto assets so that they aren’t cheated by fraudulent sellers.”, said Indrasari Wisnu Wardhana, Bappebti chief.

Notably, while Bitcoin and other cryptocurrencies are legally accepted as commodities, their use as legal tender continues to be banned. The country’s central bank, Bank Indonesia (BI), told CNBC Indonesia that it will continue to impose its ban on the use of cryptocurrencies as a payment method.

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