Indonesian Crypto Traders To Have To Invest $70 Million In Business
Crypto traders in Indonesia have expressed dissatisfaction with the decision of the Commodity Futures Regulatory Agency (Bappebti) by the Ministry of Commerce, which issued an order obliging them to have over $70 million on accounts to trade bitcoin futures, the local publication The Jakarta Post reports.
The new rules of the regulator, which came into force in October 2018, provided an opportunity for the country's crypto companies to offer financial products based on cryptocurrencies, while the use of digital assets in Indonesia is still prohibited.
These regulations were expanded on February 14. In accordance with clause 3 of Article 24, a crypto trader must confirm that there is at least 1 trillion Indonesian rupees on his accounts (about $70 million), of which 800 billion rupees should be kept as a deposit, for doing business. This amount is many times bigger than required for ordinary business, for the opening of which a trader must have 2.5 billion rupees ($178,000) on his account.
The requirement of such an amount of funds exceeds the cost of opening a rural bank, Oscar Darmawan, the executive director of the Indonesian crypto exchange Indodax, stated. In an interview with Reuters, he emphasized that such actions of the regulator impede crypto trading, no bitcoin futures have been launched so far.
Regulators must support the sector, help the economy and protect people, not kill the industry, Darmawan added.
As previously reported, SingularityNET will use blockchain in the agricultural sector of Indonesia.