Friday, February 21, 2020

Indonesia Recognizes Cryptocurrency as a Commodity in Stock Exchange

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on damolabada@gmail.com

With the demand for bitcoins and other cryptocurrencies growing daily, more people, firms, and governments have realized the need for the adoption of cryptocurrency and the blockchain technology. However, some economies still frown at the use of these digital currencies.  The latest country to give cryptocurrency the green light is Indonesia, as the country’s Trade Ministry’s Futures Exchange Supervisory Board, Bappebti has signed an agreement to make cryptocurrency a legally tradable commodity on a stock exchange. Bappebti’s head of market supervision and development bureau, Dharma Yoga insisted that this decision to permit bitcoin, ethereum, and other cryptocurrencies in the stock exchange were carefully made after four months of insightful research and study about digital currencies and the dynamics of blockchain technology.  Regarding policies to suit this decision, Dharma added that the Indonesian government would soon discharge relative decree on controlling currency trade organizations, tax assessment, battling tax evasion and anti-terrorism. According to The Jakarta Post, he stated that:

“The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse.” “The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation, and prevention of money laundering and terrorist financing.”

In the light of this, it is essential that all stakeholders work collectively to come up with a suitable system. Yoga suggested that financial regulators like the Financial Services Authority (OJK), Taxation Directorate General, the Financial Transaction Reports and Analysis Centre (PPATK), the Central Bank as well as the police counterterrorism will be required to collaborate to achieve this proper regulatory framework. Conversely, creating an appropriate and suitable organizational setting for cryptocurrency commodities trading will also involve the effective participation of Indonesia’s digital currency community.

Indonesian Central Bank Yet To Embrace Cryptocurrency

An exciting part of this news is that the country’s Trade Ministry’s Futures Exchange Supervisory Board stance on cryptocurrency is opposing that of the Central Bank. The Central Bank of Indonesia had previously insisted that it does not perceive cryptocurrency as a medium of fair exchange and cryptocurrencies are not fit to be payment instruments. This lack of acknowledgment of digital currencies had a quick impact as two Indonesia Cryptocurrency exchanges closed up in January. The central bank of Indonesia also issued a notice to discourage all citizens from using digital currencies. Many stakeholders have requested that the central bank should consider creating a cryptocurrency exchange for the country, former minister of finance, Chatib Basri suggested that the central bank should embrace digital currencies and use the blockchain platform to improve services rendered by financial institutions in the country.

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