Cryptocurrency let for Trading as Commodity in Indonesia

Indonesia’s Ministry of Trade has allowed cryptocurrency trading on futures exchanges as a commodity
05 June 2018   1628

As reported in the local news sourse, the positive decision towards crypto trading follows a 4-month research by the regulator into the subject before the regulator enclosed that cryptocurrencies like Bitcoin have to be classified as commodities. Dharma Yoga, the agency’s market supervision chief, stated that the agency had signed a formal decree “to make cryptocurrency a commodity that could be traded at the bourse”.

In the near future supporting regulations of cryptocurrency exchanges, wallet providers and mining companies, taxation and prevention of money laundering and terrorism financing via cryptos will also take place, according to Yoga. The issuance of these regulations will comprise a number of other authorities including Bank Indonesia (BI), the country’s central bank, and the Financial Services Authority (OJK), the country’s financial regulator.

These events come despite the central bank prohibiting cryptos as a payment means late last year. Bank Indonesia confirmed that stance and warned “all parties not to sell, buy, or trade virtual currency” in January.  The cryptocurrency adopters in Indonesia haven’t been discouraged in a flourishing market that sees INDODAX, one of the country’s largest cryptocurrency exchanges, on track to have more registered customers than the country’s national stock exchange.

Yoga also stated that the authority is calling on exchanges like INDODAX to give reports on product specification and training procedures to help develop a more advanced regulatory framework.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   261

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.