The new rules will address the issues of taxation and prevention of money laundering and terrorism financing. That’s why a number of other institutions will be involved in their preparation and the regulatory process afterwards. These include Bank Indonesia, the Financial Services Authority, the Taxation Directorate General, the Financial Transaction Reports and Analysis Centre, and the counterterrorism unit of the National Police.
Indonesia to Regulate Cryptocurrencies as CommoditiesDharma Yoga also said the regulations would introduce measures to prevent the loss of funds due to embezzlement or hacking of the crypto platforms. They also envisage the establishment of clearing services for the futures market.
The news about the regulations aimed at legalizing the crypto sector comes just months after the central bank of Indonesia issued a stark warning against “any use of virtual currency.” According to statements made by Bank Indonesia officials, cryptocurrencies violate the country’s legislation regulating currencies and their transactions.
Detailing the ban earlier this year, the bank stated that under the current law any payment in Indonesia should be made in the national currency, the rupiah. The announcement of BI’s position was followed by a crackdown on businesses accepting cryptocurrencies, including in Bali. The island, which is a popular holiday destination with tourists from around the world spending both fiat and crypto, was targeted with inspections in January.
