In a significant development for Indonesia's cryptocurrency ("crypto") market, the Commodity Futures Trading Regulatory Agency or Badan Pengawas Perdagangan Berjangka Komoditi ("Bappebti") has approved the establishment of key institutions to regulate and facilitate crypto transactions. These institutions are: (i) PT Bursa Komoditi Nusantara, which is authorised to run the crypto asset bourse; (ii) PT Kliring Berjangka Indonesia, which is authorised to serve as the crypto assets clearing house; and (iii) PT Tennet Depository Indonesia, which is authorised to serve as the crypto assets custodian. The establishment of these institutions marks the fulfilment of Bappebti's mandate to establish these institutions, which are integral to enhancing transparency and safety in the Indonesian crypto market. With the full establishment of these institutions, crypto traders and consumers can expect a more regulated and secure environment for their digital asset transactions.
Bappebti recently published Circular Letter No. 203/BAPPEBTI/SE/07/2023 on the national crypto market key institutions ("Circular"). Some key aspects of the Circular include the exclusivity requirement for approved crypto asset bourses to focus solely on crypto asset transactions and not engage in other commodities. Moreover, a moratorium has been imposed on new registrations for crypto asset bourses, clearing houses, and custodians. Crypto asset broker candidates now have one month to apply for Bappebti's approval as fully licensed brokers, with a one-year deadline to meet the requirements outlined in Bappebti Regulation No. 8 of 2021 (as amended). These requirements include a minimum capitalisation of IDR100 billion (approximately US$6.5 million), and compliance with specified standard operating procedures. Existing crypto asset broker candidates will also need to adhere to these requirements within one year of obtaining their registration certificate.
These regulatory developments reflect Indonesia's commitment to creating a well-regulated and secure crypto market while signalling the impending transition from Bappebti to the Financial Services Authority (OJK) as the regulating authority for the crypto sector. Stakeholders should closely monitor forthcoming implementing regulations under Law No. 4 of 2023 on Financial Sector Development and Reinforcement (PPSK Law) for further details on this transition.
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