Arsianews, Jakarta – It has been reported by Bitcoins Channel that the Peer-to-Peer (P2P) exchange LocalBitcoins has seen impressive surges in volume from the markets of Indonesia, iran Venezuela and Colombia. These areas are facing various forms of economic hardships, so the adoption of a decentralized trading platform is perhaps no surprise.
For Indonesia, the growth is far more pronounced. In the last two weeks the Indonesian market has grown 2000%, with a record 262 BTC being traded during the week of February 16th. While Iran saw 150% gains in the last week, with 67 BTC being traded, making it the 9th strongest week the nation has ever seen in P2P trade.
Then there is Venezuela and Colombia, both of which have shown very strong growth recently as well. Last weeks trading saw volumes of 1,960 BTC and 707 BTC, respectively. Last we have the Dominican Republic, which saw its second strongest week ever with 34 BTC being moved around.
It is inspiring for cryptocurrency to be getting adopted as an alternate means of transferring money around, especially in places that need it the most. It is important to remember that people having a use case for crypto is ultimately what will drive adoption.
Indonesia has joined the ranks of a handful of countries that have established a legal framework for operating crypto and digital assets futures markets. The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), which operates under Indonesia’s Ministry of Trade, has officially required multiple entities involved in crypto futures trading to seek regulatory approval and apply for registration before legally operating in Indonesia.
This policy follows the recent release of legislation that officially recognizes Bitcoin (BTC) and other digital assets as trading commodities. The Bappebti first greenlighted crypto trading as a commodity on Indonesian stock exchanges back in June 2018.
The new regulatory framework is based on a number of major rules for futures market operations, including regulation on the adoption of crypto as a tradable commodity on futures exchange markets, as well as technical provisions for placing crypto futures contracts on exchanges.
The new rules require both futures exchanges and clearing houses that offer crypto futures trading to pay at least 1.5 trillion Indonesian rupiahs (IDR) or $106 million, as well as maintain a closing capital balance of at least 1.2 trillion IDR ($85 million), according to international law-focused media agency Lexology.
The rules also affect crypto futures traders and storage service providers, requiring both to maintain at least 1 trillion IDR ($71 million) and a minimum closing balance of 800 billion IDR ($57 million) before they can become officially approved to trade crypto futures.
The regulation demands crypto futures exchanges to ensure compliance with security policies, requiring at least three staff members to be acquire Certified Information System Security Professionals (CISSP) certification. The entities should undergo risk management procedures, including compliance with Anti-Money Laundering (AML) and combating terrorism financing policies.
The new regulation was established in order to provide legal certainty around the crypto futures trading field, as well as to protect investors, as Head of Bappepti Indrasari Wisnu Wardhana stated, stressing that commodities futures trading intends to provide the ecosystem with support in the development of digital innovative business models.
While the latest document confirms crypto as being an officially accepted tradable commodity on the futures market, Bitcoin still remains banned from being used as payment in Indonesia, following a ban imposed in 2017 by Indonesia’s central bank. According to Lexology, the regulation stressed that the new regulatory scheme cannot be applied to initial coin offerings (ICOs).