INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
crypto-assets in the local market, they must meet, at a minimum, the following criteria. • They must employ distributed ledger technol - ogy (DLT). • They must be asset-backed or utility-based. • Have been assessed via the analytical hierar - chy process (AHP) method as determined by Bappebti or the OJK, which also considers the market cap value of the crypto-assets, and whether they: (a) are traded on the largest crypto-asset exchange in the world; (b) offer economic benefit; and (c) have successfully passed a risk assess - ment, including regulations on AML, CFT and proliferation of weapons of mass destruction. • They are not financial assets that are record - ed electronically by financial service institu - tions. • They are not sourced and/or used in activities contrary to the provisions of laws and regula - tions. • They must fulfil other criteria determined by the OJK. 10.4 Regulation of “Issuers” of Blockchain Assets The issuance of crypto-assets remains unregu - lated despite their rising popularity among local “issuers” in the country; the same sentiment also applies to initial coin offerings (ICOs), and the main regulation of crypto-assets (OJK Reg, 27) explicitly states that it excludes ICOs and/ or initial token offerings from the scope of its regulatory scheme. 10.5 Regulation of Blockchain Asset Trading Platforms Blockchain asset-trading platforms are regulated in Indonesia. These are defined in the regulation
as “crypto-asset traders” . Crypto-asset trad - ers (commonly known as crypto-asset trading/ exchange platforms) are defined as parties that have secured approval from Bappebti to carry out crypto-asset trading transactions in their own right and on behalf of customers. While the authors understand that the term “cryptocurrency exchanges” is more commonly used internationally for crypto-asset traders, it is important to point out here that the term “exchange” is used in the regulation to define a futures exchange that has secured approval from Bappebti to facilitate the trading of cryp - to-assets; hence, the government of Indonesia is introducing a rather different approach as regards the crypto-asset ecosystem in Indone - sia. In general, the key players involved in the physi - cal crypto-asset futures market are: • Bappebti • crypto-asset exchanges; • clearing agencies; • traders; and • depository agencies. A crypto-asset trader must be: • incorporated as a limited liability company; • a member of a crypto-asset exchange and a crypto-asset clearing agency; and • designated as a trader by the crypto-asset exchange. Each type of transaction mechanism deployed by crypto-asset traders must be regulated under the rules and regulation of the exchange. Such rules and regulation, along with amendments (if any), must be approved by the OJK.
349 CHAMBERS.COM
Powered by FlippingBook