Who has never heard of Cryptocurrency? A simplification about Cryptocurrency is: a type of currency that uses a digital file as money (a tool of exchange). Why is its name Crypto in the first place? Because of the Digital Files which created using the same ways as Cryptography, the science of hiding information.
As Cryptocurrency becomes more and more popular globally, many countries are now taking pay attention to this digital currency. Since this currency is like a cheat to become “Rich”, a regulation is well needed.
When you googled the name of Peter Saddington, the guy who’s heard about Bitcoin in 2011, and then he bought some for less than 3$ per coin. Suddenly the coin become 7500$, which means the profit on those investments became approximately 250,000%. Such a simple story of how people can become very rich with just a “code” using the form of “coin”. This story is in our reality, many want to become like Peter who are seems to be lucky and become rich in just a second. The outcome is of course a scam and fraud with the reason being hacked. Fortunately, many countries realize this situation and including Indonesia, the country that has accept Crypto as investment assets.
Existing Cryptocurrency Regulations in Indonesia
As you can see, Indonesia is also home to several crypto exchanges, including Indodax and the Binance-backed platform Tokocrypto. The rise of crypto asset buying and selling transactions makes the Indonesian government provide regulation in order to protect the public and ensure legal certainty related to Crypto Assets that are regulated, among others through:
- Regulation of the Minister of Trade No. 99 of 2018 concerning the General Policy of The Implementation of Crypto Asset Futures Trading.
- Regulation of commodity futures trading regulatory agency No. 2 of 2019 concerning the implementation of physical commodity markets on futures exchanges.
- Regulation of Commodity Futures Trading Supervisory Agency No. 9 of 2019 concerning Changes to Commodity Futures Trading Supervisory Agency Regulation No. 5 of 2019 concerning Technical Provisions for The Implementation of Physical Market of Crypto Assets on Futures Exchanges.
Requirements For Foreign Investor
To sum up, not only Indonesian investor, but foreign investor are also allowed to invest 100% in this business field.allowed to invest 100% in this business field. Here are the requirements to obtain a crypto license:
- Establish a limited liability company in Indonesia;
- Has a minimum paid-up capital of IDR 50,000,000,000 (Fifty Billion Rupiah);
- An equity of at least 80% of the paid-in capital;
- A brief explanation of the operational processes, regulations and rules related to the implementation of crypto asset trading;
- Certificate Information System Security Professional (CISSP) from 1 (one) employee and employment with employees who have CISSP Certificate.
The Role of PNP in Helping Investors
Since cryptocurrency is just an unseen commodity, many consideration must be made before giving crypto license to certain companies. It is a preventive measure so that crypto does not negatively affect Indonesian economy and society. PNP help you to establish your company with the least hassle and ensure that you stay on top of legal compliances. Should you require legal advice or consultation on the crypto license, please feel free to contact us at info@pnpclawyer.com.