Cryptocurrency trading in Southeast Asia can range from a common offense to a religious offense. However, investors in Indonesia can soon trade cryptocurrencies – legally.
On January 30, CNBC Indonesia reported that the country’s commodity futures trading watchdog – the Commodity Futures Trading Supervision Agency (CoFTRA) – has issued a permit to trade digital currencies/cryptocurrencies within the country. Moreover, more than 200 cryptocurrencies have been approved for the same.
It’s time to call the names
Some of the supported currencies include Bitcoin [BTC]Ethereum [ETH]tether [USDT]XRP, Binance coin [BNB]dotted [DOT]chain link [LINK]dollar coin [USDC]Solana [SOL]and Cardano [ADA].
However, there is a catch. While 229 cryptocurrencies have made it to the approved asset list, Indonesia’s CoFTRA reportedly wants to delist unapproved coins for the safety of customers.
While Dogecoin [DOGE] I got the green light, Shiba Inu [SHIB] The cut was not made, according to the reported list.
In order to determine which Indonesian cryptocurrency will be allowed to trade, CoFTRA reportedly looked at metrics including the market capitalization of the asset, its score on the Coin Market Cap, and its own regulations. Other key factors included crypto security, scalability, founding team, blockchain governance, and a verifiable roadmap.
According to a translation, CNBC Indonesia quoted a CoFTRA official who said,
“With the issuance of the CoFTRA regulation, it is hoped that the physical trading of crypto assets in Indonesia will be able to provide legal certainty as well as protection for people dealing with physical crypto assets in Indonesia.”
don’t get hurt
The announcement comes days after the Indonesian Financial Services Authority (OJK) banned financial institutions from participating in crypto-asset trading.
This was a huge blow to many as more than seven million people in Indonesia are believed to have cryptocurrency. This is more than 2% of the country’s population.
Many religious groups have also expressed concerns about cryptocurrencies, including the National Council of Ulemas (MUI) which has ruled that cryptocurrency should be banned for Muslims – unless they abide by Islamic law.
Now, it remains to be seen how CoFTRA participants and industry participants will work together.
Binance to go backpacking?
Several big players are currently vying for a slice of the Indonesian crypto market. Topp Jirayut Srupsrisopa, founder of Bitkub, Thailand’s largest crypto exchange, had previously indicated that the company had no plans to battle crypto giants already in Indonesia.
It is supposed to be Binance Holdings Ltd. One such company, after it was reported that it is in talks to set up a crypto exchange in Indonesia.