The Commodity Futures Trading Regulatory Agency (Badan Perdagangan Berjangka Komoditi) / (“Bappebti”) has recently issued Regulation No. 11 of 2022 on Establishment of Tradable Crypto Assets in the Crypto Asset Physical Market (“Bappebti Reg. 11/2022”) which have been effective since 8 August 2022. Bappebti Reg. 11/2022 provides an updated list of crypto assets that can be legally traded in Indonesia in the Crypto Asset Physical Market (pasar fisik aset kripto) in Annex II of Bappebti Reg. 11/2022.
General Provisions on Trading of Crypto Assets
Article 1 (1) of Bappebti Reg. 11/2022 stipulates that Prospective Crypto Asset Physical Traders
(calon pedagang fisik asset kripto) or Crypto Asset Physical Traders (pedagang fisik asset kripto) can only trade crypto asset in a Crypto Asset Physical Market which are registered in a crypto asset list listed in Annex II of Bappebti Reg. 11/2022 established by the head of the Bappebti (“Crypto Asset List”). The current Annex II the Crypto Assets List reflects around 383 items / types of crypto asset that can be traded in Indonesia.
Before being registered in the Crypto Asset List, a crypto asset must be evaluated to satisfy the
criteria set out in the crypto asset establishment guidelines in Annex I of Bappebti Reg. 11/2022 1 . Such criteria aim to protect the investor / public from any monopolistic exploitation risk and any unfair market with the support to the entrepreneur that conducts the trading with integrity, competency, honest and professional principle. The other value that has been further set up through the Annex I is relating to the risk mitigation towards the consumer or investor as a result of imbalance information and moral hazard.
Amendments to the Crypto Asset List
Bappebti Reg. 11/2022 allows the Prospective Crypto Asset Physical Traders or Crypto Asset
Physical Traders to propose an addition or deregistration of a crypto asset that may be traded in the Crypto Asset List to the Bappebti 2 . Such proposal must be evaluated by the Crypto Assets Futures Exchange (Bursa Berjangka Aset Kripto) and the Crypto Asset Committee (Komite Aset Kripto) to ensure that registered crypto asset fulfils the requirements and criteria set out by the under Bappebti Reg. 11/2022.
In the event that a Crypto Assets Futures Exchange / Crypto Asset Committee is not yet established, the assessment to add and/or deregister a crypto asset to the Crypto Asset List are conducted by an Crypto List Assessment Team, consists of Bappebti, association in the field of Crypto Assets, and the entrepreneur in the field of Crypto Asset Physical Market.
The Crypto List Assessment Team must conduct assessment over the crypto asset proposed by each Prospective Crypto Asset Physical Trader and provide any recommendation to the head of the Bappebti within 5 days as of the assessment have been conducted. The Bappebti will then issue a Bappebti regulation stipulating the updated crypto asset list within 7 days after receiving such recommendation if the assessment is in the positive result.
Continuous Evaluation of Crypto Asset 3
The Crypto Assets Futures Exchanges and Crypto Asset Committee must conduct continuous and periodical assessment / evaluation over the registered crypto assets in the Crypto Asset List traded in the Crypto Assets Physical Market at least once every year and report the result of such evaluation to the Bappebti. If a crypto asset is deemed to no longer fulfil the requirements set out and not in accordance with general principles and criteria, the Bappebti can deregister the crypto asset from the Crypto Asset List.
Deregistered Crypto Assets
Upon the deregistration of certain crypto assets in the Crypto Asset List and the issuance of the updated Crypto Asset List, the Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders must cease any trading activities of the deregistered crypto assets within 30 days. Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders must conduct settlement for discontinuation of trade over the deregistered crypto assets by:
a. requesting the customers to liquidate the deregistered crypto assets it owns; or
b. conduct transfer of the crypto asset to the customers wallet [4] .
The settlement procedures must be then notified to the customers and stipulated in the trading rules. Further, the Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders still remains responsible to maintain all the deregistered crypto asset until the customers conduct a withdrawal of the deregistered crypto asset.
The above procedures also apply for crypto assets which have already been traded before the
implementation of Bappebti Reg. 11/2022 but not registered in the current Crypto Assets List [5].
Obligations for Physical Crypto Assets Trader
Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders that has plan to trade one of the crypto assets listed on the Crypto Asset List must provide a written notification to the Head of Bappebti at least 7 days prior to the start of trading. The provision also applies when a Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders plans to cease any trading activities of one of the Crypto Assets in the Crypto Assets List, which such notification must be conducted 10 days prior to ceasing of trade. The notification for the cease of trading must at least contain:
a. reasons for ceasing trade and/or mitigation plans.
b. number of customers and amount of Crypto Assets owned on the date of the discontinuation; and
c. total value of Crypto Asset on the date of discontinuation (in Indonesian Rupiah)
If trading of a crypto asset were to be ceased, the settlement procedures 6 must be conducted and the Crypto Asset Physical Traders / Prospective Crypto Asset Physical Traders must maintain the crypto asset until the customers conduct a withdrawal of the discontinued crypto asset.
Sanctions
Bappebti Reg. 11/2022 also stipulates that administrative sanctions may be imposed for parties which violates any provisions under Bappebti Reg. 11/2022 in the form of:
a. written reprimand.
b. fines to pay a certain amount of money.
c. suspension of business activities.
d. cancellation of registration as a Prospective Crypto Asset Physical Traders; and The settlement procedures must also be stipulated in the trading rules. e. cancellation of approval.
Metalaw Notes:
With the issuance of Bappebti Reg. 11/2022, 383 different crypto assets as listed in Annex II may now be traded legally in Indonesia, which is significantly consists of more than the previous list under Bappebti Regulation No. 7 of 2020 which only covers 229 crypto assets. Furthermore, Bappebti Reg. 11/2022 also sets out a further guideline to evaluate and determine on whether a crypto asset has fulfilled the requirements to be traded in a Crypto Asset Physical Market (Annex I), providing a clear criterion on whether and how a crypto asset may be traded legally in Indonesia or not.
For Further Information, Please Contact:
MetaLAW, Legal Consultant, Jakarta, Indonesia
general@metalaw.id
1. Pursuant to Article 1 (4) of Bappebti Reg. 11/2022, the crypto asset establishment guidelines consist of (i) general guidelines in evaluating conformity of the crypto asset and (ii) technical guidelines on conducting evaluation of crypto assets, which consist of general principles and criteria of crypto asset establishment.
2. Article 2 (1) Bappebti Reg. 11/2022
3. Article 3 Bappebti Reg. 11/2022 4. Article 4 (3) Bappebti Reg. 11/2022
5. Article 7 Bappebti Reg. 112022
6. Pursuant to Article 8 (4), (5) of Bappebti Reg. 11/202The settlement of for discontinuation of trade is conducted by:
a. requesting the customers to liquidate the discontinued crypto assets it owns; or
b. transfer of the discontinued crypto asset to the customers wallet
