Is Cryptocurrency Legal in Indonesia?
Surely you are asking: Is cryptocurrency legal in Indonesia. The answer: Yes, cryptocurrencies are legal in Indonesia. Cryptocurrencies were legalized in September 2018, when the Ministry of Commerce approved the trading of Bitcoin (BTC) and crypto assets as commodities. The Futures Exchange Supervisory Agency (CoFTRA) is in charge of domestic cryptocurrency and blockchain regulation.
In 2020, crypto exchange registration requirements will come into effect in Indonesia, following CoFTRA’s legal framework for crypto assets that was initiated in the previous year. The agency justified the action by citing the need to protect Indonesian traders from fraudulent platforms.
Even though cryptocurrencies are legal in Indonesia, there are still major hurdles for crypto organizations and local crypto communities. Indonesia’s central bank does not recognize cryptocurrencies as a means of payment, which presents a major problem for widespread crypto adoption. In addition, many banks are reluctant to open accounts related to crypto trading and there is still a lot of misinformation circulating about the nature of cryptocurrencies.
Despite these issues, important progress has been made to build a comprehensive legal framework that will ensure the crypto industry thrives in Indonesia.
The Main Regulations of Cryptocurrency in Indonesia
- CoFTRA Regulation No. 7 (2020): CoFTRA published a list of 229 crypto assets that can be legally traded on the exchange.
- CoFTRA Regulation No. 5 (2019): CoFTRA defines cryptocurrency as a commodity and provides clarity on the regulatory requirements for cryptocurrency exchanges in Indonesia.
Crypto Legal and Regulatory Status in Indonesia
- Cryptocurrencies are legal in Indonesia and are defined as commodities
- Futures Exchange Supervisory Board regulates crypto in the country
- Cryptocurrencies cannot be used as legal tender in Indonesia
- Indonesia implements strict anti-money laundering laws
- Futures Exchange Supervisory Board oversees licensing for crypto exchanges
Who Accepts Crypto in Indonesia?
The current status of cryptocurrencies as a commodity in Indonesia has limited the adoption of cryptocurrencies by traders. However, a limited selection of businesses are starting to accept crypto payments, including:
ESO Trans Digital: ESO Trans Digital is a platform that uses blockchain and NFC technology to facilitate payments and transactions. Users can pay for goods and services with crypto via QR Codes and other payment options.
Nobi: Nobi is a blockchain savings platform that offers users interest in their cryptocurrency. Users can deposit, store and stake cryptocurrencies to earn rewards on their mobile app.
BCS technology: BCS Technology is a blockchain consulting firm that builds projects. The company accepts crypto payments for its services.
There are some who anticipate that the government will eventually change the classification of cryptocurrencies from commodities to digital assets. This will accelerate the adoption of cryptocurrencies as a form of payment by merchants.
Where Can You Buy Crypto in Indonesia?
The legal status of cryptocurrencies means that Indonesians can buy crypto assets on any registered exchange. Here are some platforms you can use to buy Bitcoin and other cryptocurrencies in Indonesia:
Indodax: Indodax is one of the largest crypto exchanges in Indonesia. It has a well-known local presence and offers crypto services to Indonesian citizens who wish to buy, sell and trade cryptocurrencies.
TokoCrypto: TokoCrypto is an exchange that advertises itself as one of the easiest to use platforms for crypto traders in Indonesia. It is backed by Binance and offers fiat on-ramp which allows users to convert between Indonesian rupiah and supported cryptocurrencies.
Binance: Even though Binance is not registered with CoFTRA, Indonesian citizens can still access the popular crypto exchange. Binance offers a variety of features that include buying, trading, and staking cryptocurrencies.
Bitcoin ATM: As of May 2021, Indonesia has only one Bitcoin ATM, which is located in the nation’s capital, Jakarta. However, it is important to note that using a Bitcoin ATM involves high transaction fees of around 5-10%.