INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Ruth A. Mendrofa, ABNR Counsellors at Law
10.7 Crypto-Related Lending Crypto-related lending remains unregulated under the current regulatory frameworks. 10.8 Cryptocurrency Derivatives The offering of cryptocurrency derivatives is not regulated. However, CFX, a crypto exchange in Indonesia launched its first cryptocurrency derivative product in September 2024. 10.9 Decentralised Finance (DeFi) Decentralised finance (DeFi) is not yet regulated in Indonesia. Nonetheless, some local players have tested the water, as listed below. It should be noted that the following are still in their early stages and that the market is expected to evolve. • Litedex Protocol, a decentralised exchange (DEX), is a protocol that will serve as a meta finance blockchain developer for local play - ers. The protocol develops elements of DeFi, including staking, yield farming, swapping, liquidity pool and borrowing and lending, as well as non-fungible token (NFT) marketplace and bridge features. Litedex Protocol is also developing its native token, the LDX token. • tokocrypto, the first registered crypto-asset trader (crypto-exchange), initiated a DeFi utility project through its platform token, Toko Token (TKO). The TKO ecosystem promotes some DeFi elements, such as borrowing and lending, and staking and savings. On another note, tokocrypto, and some other traders, also list native DeFi tokens available for trad -
Crypto-asset traders must meet certain criteria as specified in the regulation, including: • having minimum paid-up capital of IDR100 billion during the application of business licences; • the ability to maintain equity of at least IDR50 billion; • an organisational structure consisting of at least an information technology division, audit division, legal division, consumer complaints division, client support division, as well as an accounting and finance division; • sufficient online trading systems and facilities to facilitate the trade; • having certain trading rules and standard operating procedures based on minimum requirements set out by the regulations; • having at least one employee who is a certi - fied information systems security profes - sional; and • having prospective members of the board of directors, board of commissioners, share - holders, and/or controllers who pass the fit- and-proper test conducted by the OJK. 10.6 Staking Article 82 paragraph 4 of OJK Reg, 27 acknowl - edges that the OJK may grant additional licenc - es to licensed crypto-asset traders, including licences for staking services. However, such authorisations are contingent upon the trader entering into a co-operation agreement with the Ministry of Home Affairs to secure access rights and use population data in connection with the implementation of AML, CFT, and the Prevention of Proliferation of Weapons of Mass Destruction Funding Programmes. Nevertheless, OJK Reg, 27 does not yet provide specific details regard - ing the staking licence.
ing purposes on its platform. 10.10Regulation of Funds
Currently, funds investing in blockchain assets are not regulated, although, per the prevail - ing regulation, only individuals are allowed to become crypto-asset customers trading in the Indonesian physical/spot crypto-assets market.
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