Indonesia’s Bappebti issues its third amendment, extending the crypto license application until the end of November. In a news advisory shared via its official website, the Indonesian Commodity Futures Trading Regulatory Agency acknowledges the need for more time for interested parties to file for a Physical Crypto Asset Traders (PFAK) license.
Under the current legislation on promoting and using crypto assets in Indonesia, interested traders must acquire an asset trading license. The order to extend the deadline for applying for a permit is based on Bappebti’s Regulation N0.9 of 2024, the third amendment to the rules initially drafted and approved in 2021.
With New Deadline, Can We Expect More Participation?
Many see the agency’s latest move as favorable for all market participants. The new policy states that exchanges and traders initially registered as Prospective Physical Traders of Crypto Assets or CPAK can now apply for a formal license. During the extension, applicants are expected to complete their transition, including becoming members of Indonesia’s Futures Exchange and the Crypto Futures Clearing House.
Indonesia extends deadline for crypto exchanges to meet licensing requirements
Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has prolonged the deadline for crypto exchanges to meet licensing requirements to become Physical Crypto Asset Traders until the last…
— CoinNess Global (@CoinnessGL) October 22, 2024
Also, the latest amendment to the rules allows business enterprises and entities to apply and trade crypto assets. Previously, only individuals are permitted by law to trade crypto assets. With this new guideline, the government and other stakeholders expect more institutional involvement in the country’s fast-growing crypto market.
Traders, Market Participants Welcome The Extension
Traders and institutional participants welcome the Indonesian government’s latest move. Oscar Darmawan, the CEO of INDODAX, stated that the extension will allow the exchanges (like INDODAX) to complete requirements and comply with regulations. According to Darmawan, INDODAX has complied with some steps, including membership in clearing houses and waiting for the final validation.
Bitcoin market cap currently at $1.32 trillion. Chart: TradingView.com
Even before the agency’s latest amendment, its new crypto policies had attracted a few popular players. For example, Tokocrypto is a leading crypto exchange that is connected to Binance. The exchange was one of the first to apply and now carries a license to participate in the country’s growing crypto market. Thanks to its approval, it’s now Indonesia’s third-largest crypto and boasts over 4.5 million customers.
What to Expect from New Regulations
Aside from expanding participation, these new Indonesian regulations on crypto will promote fairness and transparency. The new regulations highlight the need for an updated Know Your Transaction (KYT), which means trading must be fair and transparent to protect individual and institutional investors.
Licensed participants are also expected to cooperate with Ditjen Dukcapil, the country’s agency in charge of civil registration. According to the new policies, market participants should now work with Ditjen Dukcapil. Also, the new rules say that interested institutions and individuals must first apply to become members of Indonesia’s Futures Exchange and Crypto Futures Clearing House.
Featured image from Reuters, chart from TradingView