The Indonesian government has been displaying a negative stance towards crypto for some years now. But now the current development is recorded as a slap on the face of cryptocurrency, more specifically, Bitcoin futures. Initially, the government banned the use of cryptocurrencies as a method of payment and stated that violators would be treated harshly. However, Bitcoin trading was still permitted.
Indonesia is the largest Muslim-majority country with crypto traders outnumbering regular trading, but the government refuses to support the industry. Now the Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI) has shown a negative stance towards crypto futures trading by imposing harsh conditions on it.
The government has allowed crypto futures but want crypto traders to keep a deposit of around five and a half million dollars ($5.7m) and other prerequisites to continue operating. Moreover, the minimum paid-up level has been increased above seven million dollars ($7m) while the minimum deposit is at least the staggering five and a half million ($5.7m). Traders are also required to keep transaction record of at least 5 years.
Furthermore, crypto exchanges will be required to keep a minimum capital of seventy-one million dollars ($71m), and the minimum paid-up capital is set at fifty-seven million dollars ($57m). These restrictions will increase operating costs as traders are now bound to hire client supporting security personnel.
Sources report that the prerequisites set by BAPPEBTI are harsher for the crypto sector than any other sector as other traders only require a minimum paid-up capital of one hundred and seventy-seven thousand dollars ($177,000). People believe that this would not only hinder in the industry’s growth but rather stunt its growth in the country altogether.
Currently, the country enjoys crypto trading, and the number of traders is astoundingly high, however, considering the stance towards futures trading it is highly unlikely that similar success will be achieved here.