In a very short amount of time, through its evolution, technology has been running people’s lives. It seems that most people can’t function without their smartphones, tablets, and computer. Plus, the emergence of the World Wide Web is simply brilliant! As technology advances, it’s evident that digital currency is marking its purpose at present and in the future. Now, in this article, you’ll get to know the following:
• Indonesian government’s perspective with regard to cryptocurrency • Understanding the essence of digital currency in Indonesia
Indonesian Government and Crypto Currency
Indonesia, the world’s largest island country, has a fascinating perspective with digital currency. In June of last year, a declaration has been taken on by the Commodity Futures Trading Regulatory Agency (Bappebti). This is a firm that Indonesia’s Ministry of Trade manages. The decree states that cryptocurrency is lawfully open as an instrument for any stock exchanges. But, cryptocurrency futures exchanges have to be registered and permitted before functioning. Recently, Bitcoin or BTC, a worldwide used virtual money, has been accepted as a trading commodity as per the Indonesian government. Moreover, the government has announced in February 2019 a fresh lawmaking about cryptocurrency. It’s a ruling that would regulate taxation, and currency exchange companies. It aims to rectify the remaining issues linked to digital currency.
Highlights of the Decree
Cryptocurrencies can now legally circulate in Indonesia. But, there are certain requisites that digital currencies must comply with such as the following:
• Risk assessment • Anti-money laundering or AML • Contesting the financing of terrorism
For cryptocurrency traders, they are obliged to secure trading records for at least five years. Also, a server located inside the country is a must. Along with this, they must maintain a minimum paid-up capital of 1 trillion Indonesian rupiahs. The minimum closing balance should be 800 billion Indonesian rupiahs. All these are the precautionary measures that the Indonesian government wants to ensure to protect the people.
The Essence of Digital Currency in Indonesia
Crypto currency uses cryptography to make secure transactions. It also regulates the generation of more currency units. In cryptography, only the individuals who transact can read and process it. In other words, transaction records are being stored in a safe database. This provides peace of mind to both consumers and investors.
More and more countries have started embracing the benefits that virtual currencies bring to people. Crypto exchange is making its way to Indonesia. The Indonesian government is seeing the potential of virtual currency in the country. In fact, it’s doing the best to regulate the digital transactions through proper ways. This is good to hear because illegal activities can be reduced and major consequences can be stopped. Plus, travel and transport through crypto are becoming increasingly accessible means.
One More Thing Before You Go Indonesians are hardworking people, and they run businesses effectively. In today’s digital age, they believe that the existence of virtual currency would bring utmost convenience to their business. Some of the notable benefits include low cost, and processing trades is quickly and efficient