Report: In Indonesia legal Bitcoin is based on commodities

[timerland]

Based on the release issued by the Ministry of Commerce of the Republic of Indonesia through the State News, Indonesia positioned cryptocurrency as a commodity. This states that Indonesia allows cryptocurrency to circulate in the community. The Ministry of Trade of the Republic of Indonesia authorizes BAPPEBTI (Institute for Commodity Trading Supervision) similar to the SEC, to immediately issue rules relating to cryptocurrency trading. (if it has been published immediately updated).

Important note is that Indonesia refuses to use cryptocurrency as a payment transaction tool, based on law Number 7 of 2011 concerning Currency and Bank Indonesia rules Number 17/3/PBI/2015 concerning the Obligation to Use Rupiah in the Territory of the Republic of Indonesia.

While the rules for crowdfunding, Indonesia are regulated by the Financial Services Authority (OJK) through POJK.04/2018 regarding Equity Crowdfunding. Where all institutions that will conduct crowdfunding must have OJK permission and at a minimum the company must be a limited liability company (Perseroan Terbatas) or cooperative. This rule also limits the maximum value of the share offer of Rp. 10 billion (USD800 million).

Note: If there is a renewal, I will update it immediately.

But what exactly does this mean?

I guess they have clarified their position on bitcoin, i.e. it's not illegal to use or hold, but classifying as a commodity doesn't really help much in terms of determining what is legal to do with bitcoin, what regulation surrounds the use of bitcoin within Indonesia, etc. It's all very vague.

In fact, classifying something as a commodity would be no different to classifying it as a currency, if all the regulations are the same between the two. Perhaps there will be tax implications, but that is unknown from this report.

Drawbacks:
1. Bitcoins can't be used for purchasing goods and services.

Just because bitcoin isn't legal tender doesn't mean it can't be used to purchase goods and services. Who's to stop people from bartering fish for cows, for example, even though neither of these are legal tender and can be considered to be commodities? IMO, the same applies to bitcoin in this context.

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[kaisa]

But what exactly does this mean?

I guess they have clarified their position on bitcoin, i.e. it's not illegal to use or hold, but classifying as a commodity doesn't really help much in terms of determining what is legal to do with bitcoin, what regulation surrounds the use of bitcoin within Indonesia, etc. It's all very vague.

In fact, classifying something as a commodity would be no different to classifying it as a currency, if all the regulations are the same between the two. Perhaps there will be tax implications, but that is unknown from this report.

Why do you think like that?

For now, our country has official rules for commodity trading and rules for crypto asset trading institutions by BAPPETI (SEC in Indonesian) http://bappebti.go.id/pbk/sk_kep_kepala_bappebti/detail/5205.
This is not just legality for bitcoin but for some crypto assets except ICO. The regulation also states that the institution must pass the ISO 27001 (Information Security Management System), ISO 27017 (cloud security) and ISO 27018 (cloud privacy) certificates. At least if you have to make an exchange company, you must have funds for collateral of 1.5 trillion rupiah or around $ 106,623,886. Funds are needed to avoid fictitious or scam companies.
In our country it is final that bitcoin and crypto assets are not used as a means of payment, even for payments between companies are prohibited from using dollars except payments between countries. So you cannot say that the rules in our country are "very vague", each country has its own policies for strengthening their physical money.