Cryptocurrencies are commodities… or at least in Indonesia
The Ministry of Trade in Indonesia has supposedly signed a decree to allow cryptocurrency trading on futures exchanges as a commodity. Back in January the Indonesian central bank warned all parties not to “sell, buy, or trade virtual currency.”
This sparked a study by regulators into cryptocurrencies, such as bitcoin as to how they should be categorised for the purposes of trading. Following the findings the Future Exchange Supervisory Board (Bappebti) has declared that cryptocurrencies are commodities for the purpose of trading on futures exchanges.
This development comes despite ‘Bank Indonesia’, the Indonesian central bank, banning cryptocurrencies as a payment instrument in 2017. This ban did not have to much of an impact on Indonesian cryptocurrency traders and INDODAX, the countries targets cryptocurrency exchange is on track to have more users than their national stock exchange.
What now for Cryptocurrencies in Indonesia?
The agency’s market supervision chief, Dharma Yoga, has also revealed that the Indonesian government is in the process of drafting legislation for; regulating cryptocurrency exchanges, taxation and anti money laundering procedures.
Bappebti will work directly with exchanges, in line with these regulations. Exchanges will be asked to submit reports on the product specification and their individual trading procedure.
“The issuance of these regulations will involve a number of other authorities including Bank Indonesia (BI), the country’s central bank, and the Financial Services Authority (OJK), the country’s financial regulator.”
This is just another positive step for cryptocurrencies and it shows they are been taken far more seriously.
Cryptocurrencies are commodities
Are cryptocurrencies commodities?
A commodity is anything which is useful or valuable. Traditionally commodities where broken down into two categories; soft commodities, which are grown, so things like rice and wheat. An hard commodities, things which are mined, so things like gold, copper and oil… And now bitcoin.
A commodity may well be the best categorisation for cryptocurrencies. Cryptocurrencies are both useful and valuable, they provide many different means of use, payments, voting, smart contracts, trading and many more. They also have a value and can be used a store of value. They may well fit into other categories but for now it seems that a commodity is best place to allow mainstream trading of cryptocurrencies.