The Commodity and Futures Trading Regulatory Agency (CoFTRA) of the Ministry of Trade had issued four regulations on the implementation of commodity trading for crypto assets and digital gold.
According to a recent press release, these regulations will serve as the legal basis for trading crypto assets as well as facilitate the growth and development of the digital gold physical trading industry through future exchanges.
These regulations follow up on the Minister of Trade Regulation No. 99 of 2018: General Policy for the Implementation of Crypto Asset Trading, and the Minister of Trade Regulation No. 119 of 2018: General Policy on the Trading of Physical Market for Digital Gold on the Futures Exchange.
This proves that the Indonesian Government is keeping abreast with the dynamic Commodity and Futures Trading (PBK) industry.
In addition, they are also enabling the development of digital commodity innovation businesses.
The four new regulations are as follows:
- CoFTRA Regulation No. 2 of 2019: The Implementation of the Commodity Physical Market on the Futures Exchange
- CoFTRA Regulation No. 3 of 2019: Commodities that can be Subjected to Futures Contracts, Sharia Derivative Contracts and/or Other Derivative Contracts Traded on the Futures Exchange
- CoFTRA Regulation No. 4 of 2019: Technical Provisions for the Implementation of the Digital Gold Physical Market on the Futures Exchange
- CoFTRA Regulation No. 5 of 2019: Technical Provisions for the Implementation of Crypto Asset Physical Markets on the Futures Exchange
Scope of the Regulations
CoFTRA Regulation No. 2 of 2019: The Implementation of the Commodity Physical Market on the Futures Exchange will be the legal basis for the operation and regulation of the physical market institutions in the stock exchange.
CoFTRA Regulation No. 3 of 2019: Commodities that can be Subjected to Futures Contracts, Sharia Derivative Contracts and/or Other Derivative Contracts Traded on the Futures Exchange is the legal basis for establishing crypto assets as one of the commodities by adding ‘commodities in the field of digital assets in the form of crypto assets’.
CoFTRA Regulation No. 4 of 2019: Technical Provisions for the Implementation of the Digital Gold Physical Market on the Futures Exchange will regulate the physical gold market institutions with more specific requirements.
CoFTRA Regulation No. 5 of 2019: Technical Provisions for the Implementation of Crypto Asset Physical Markets on the Futures Exchange regulates more specific requirements in relation to the trading of crypto assets.
It is expected that the issuance of these regulations will increase the trust and integrity of the Commodity and Futures Trading business actors in conducting their transactions for both crypto and digital gold assets.
The four regulations and what they cover can be found here.
