Thursday, July 25, 2024

In contrast to the regulatory stance adopted by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Supervisory Agency (CFTSA) of the Republic of Indonesia has officially designated 501 cryptocurrencies as commodities. This comprehensive list includes popular tokens like bitcoin, ethereum, usd coin, litecoin, and others, which the SEC has categorized as securities in recent years.

Divergent Crypto Regulations: Indonesia Adopts 501 Digital Assets as Commodities

On June 9, 2023, Indonesia’s regulatory agency Bappebti publicly released a comprehensive catalog of 501 crypto assets now classified as commodities within the country. This classification encompasses well-known coins such as LTC, UNI, SOL, BTC, ADA, ETH, XRP, SAND, DOT, XTZ, XLM, BUSD, and XRP, among others. These assessments were made following the Indonesian government’s announcement in September 2022 regarding the establishment of a crypto exchange. Subsequently, discussions on new financial legislation emerged to strengthen cryptocurrency regulations.

Additionally, in response to the downfall of FTX, Bappebti issued directives to cryptocurrency exchanges instructing them to cease trading FTX’s native token, FTT. The regulatory approach taken by Indonesian authorities significantly diverges from that of their counterparts in the United States, where over three dozen crypto assets, including telegram gram token (TON), tokencard (TKN), tron (TRX), xrp (XRP), xyo network (XYO), flexacoin (AMP), hydro (HYDRO), iht real estate (IHT), kik (KIN), kromatica (KROM), and lbry credits (LBC), have been classified as securities.

Moreover, Indonesia supports the de-dollarization efforts and the plans of the BRICS countries to strengthen non-U.S. fiat currencies. In April, Perry Warjiyo, the governor of the Bank of Indonesia, stated, “Indonesia has initiated the diversification of currency usage in the form of LCT — following the same direction as the BRICS. In fact, Indonesia is even more concrete.” Indonesia’s perspective on crypto assets aligns with court rulings in China, where digital currencies and non-fungible tokens (NFTs) have been classified as property.

During an April court case involving the now-defunct crypto exchange Gatecoin, a judge in Hong Kong ruled that crypto assets should be treated as “property.” With Indonesia taking the lead in classifying 501 crypto assets as commodities, it is likely that several other countries in the region will follow the path set by Bappebti.

Will Indonesia’s classification of 501 cryptocurrencies as commodities pave the way for a global shift in regulatory approach? Share your thoughts and opinions on this matter in the comments section below.

Frequently Asked Questions (FAQs) about crypto regulations

What is the regulatory stance of Indonesia regarding cryptocurrencies?

The regulatory stance of Indonesia differs from that of the United States. The Commodity Futures Trading Supervisory Agency (CFTSA) of Indonesia has classified 501 cryptocurrencies as commodities, whereas the U.S. Securities and Exchange Commission (SEC) has categorized some of these digital assets as securities.

Which cryptocurrencies are included in Indonesia’s classification as commodities?

The list of 501 cryptocurrencies classified as commodities in Indonesia includes popular tokens like bitcoin, ethereum, usd coin, litecoin, and many others. It encompasses well-known coins such as LTC, UNI, SOL, BTC, ADA, ETH, XRP, SAND, DOT, XTZ, XLM, BUSD, and XRP, among others.

How does Indonesia’s regulatory approach compare to that of the United States?

Indonesia’s regulatory approach diverges significantly from that of the United States. While Indonesia has classified 501 cryptocurrencies as commodities, the United States has categorized over three dozen crypto assets, including telegram gram token (TON), tokencard (TKN), tron (TRX), xrp (XRP), xyo network (XYO), and others, as securities.

Will Indonesia’s classification of cryptocurrencies as commodities impact global regulatory approaches?

Indonesia’s classification of 501 cryptocurrencies as commodities could potentially influence global regulatory approaches. As Indonesia takes the lead in this classification, it is likely that several other countries in the region may follow suit, shaping the future of cryptocurrency regulations worldwide.

What is Indonesia’s stance on de-dollarization and non-U.S. fiat currencies?

Indonesia supports de-dollarization efforts and the plans of the BRICS countries to strengthen non-U.S. fiat currencies. The governor of the Bank of Indonesia, Perry Warjiyo, has emphasized the country’s initiative to diversify currency usage, aligning with the direction of the BRICS nations.

How are crypto assets treated legally in Indonesia?

In Indonesia, crypto assets have been classified as commodities, aligning with court rulings in China where digital currencies and non-fungible tokens (NFTs) have also been classified as property. This legal treatment provides a framework for the regulation and treatment of crypto assets within the country.

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