“Furthermore, the Traders must maintain its net capital adjusted which shows the calculation of working capital. The net capital adjusted itself is the difference between current assets and liabilities.”
In Indonesia, the crypto business is one of the active industries right now. The Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi, or “Bappebti”) mentioned the number of crypto investors and transaction value had been increased significantly at the beginning of 2022. In February 2022, Indonesia reached the crypto transaction value of IDR 83,8 trillion with 12,4 million crypto investors.
Bappebti has governed physical crypto-asset through Regulation Number 8 of 2021 regarding Guidelines for the Implementation of Physical Market of Crypto Assets in Futures Exchange (”Regulation 8/2021”) that also mentioned the legal aspects of the crypto sectors, including the legal compliance that must be obeyed by the Company that runs a crypto business.
A. The Differences between Crypto Trader and Crypto Wallet
In accordance with Article 1 number 8 of Regulation 8/2021, the definition of Physical Crypto Asset Trader is as follows:
“Physical Crypto Asset Trader is a party that has approval from Head of Bappebti to conduct transactions activities regarding Crypto Asset whether on behalf of itself and/or to facilitate Crypto Asset Customer.”
With regard to the definition, Physical Crypto Asset Trader is a party that has business activity on conducting transactions regarding the crypto assets. Furthermore, there are no such Crypto Wallet Services Provider terms in Regulation 8/2021. In order to know its terms, it is necessary to look at the definition of the wallet itself. Article 1 number 12 of Regulation 8/2021 stated that:
“Wallet is the media that used to lay in crypto asset, both in coin or token.”
Furthermore, Crypto Wallet Services Provider itself is governed by Article 1 number 10. Its clause did not use Crypto Wallet Services Provider. However, because the definition itself represents the Wallet definition, then that clause can be used to understand what Crypto Wallet Services Provider is. It stated below:
“Crypto Asset Saver Manager is the party who has approval from Head of Bappebti to manage Crypto Asset saver with respect to conduct safekeeping, maintenance, surveillance, and/or Crypto Asset delivers.”
With regard to the wallet definition, it can be concluded that the Crypto Wallet Service Provider is the party that has activities to provide media for storing the crypto assets.
From the definitions above, it can be concluded that the difference between Physical Crypto Asset Trader and Crypto Asset Store Manager is related to both business activities, where the Physical Crypto Asset Trader is involved as the party that provides physical crypto-asset transactions services, while the Crypto Asset Store Manager is the party that provides crypto asset storage services.
B. Scope of Business
The scope of business of Physical Crypto Asset Trader is as follows:
- sale and purchase between Crypto Asset and Rupiah currency;
- exchange between one or more types of Crypto Asset;
- store crypto assets belonging to crypto-assets customers;
- crypto-asset transfer.
In carrying out its business activities, Physical Crypto Asset Trader is only permitted to trade Crypto Assets that are determined by the Head of Bappebti in the list of Crypto Assets traded on the Physical Crypto Asset Market. The list above is governed by Bappebti Regulation Number 7 of 2020 regarding the Stipulation of Crypto Assets List that can be Traded in the Physical Crypto Asset Market.
Furthermore, Physical Crypto Asset Trader Applicant is prohibited to facilitate transactions if the fund and/or crypto asset are not sufficient. They are prohibited from conducting other activities besides Physical Commodities Trader as well.
Hereinafter, the Crypto Asset Store Manager’s scope of business is to store crypto assets that are determined by the Head of Bappebti.
C. Legal Compliances
The Physical Crypto Asset Traders are obligated to deliver their report to Bappebti consisting of:
- daily and monthly transactions report;
- daily, monthly, and annual financial statement; and
- quarterly and annual company activities report.
Furthermore, the Traders must maintain their net capital adjusted which shows the calculation of working capital. The net capital adjusted itself is the difference between current assets and liabilities.
The Physical Crypto Asset Traders are also obligated to:
- inform every change of management, address, company name, shares ownership, the system, and its trading rules, or any other changes including branch office opening to obtain Bappebti approval;
- deliver periodically and from time to time reports of crypto asset trade activities;
- reporting the list of parties that included controller and beneficial owners to the Head of Bappebti. The controller is a party that is also responsible in the event of a violation and/or loss for a violation or error in management;
- apply anti-money laundering and counter-terrorism funding;
- reporting any suspicious financial transactions to the Indonesian Financial Transaction Reports and Analysis Center (Pusat Pelaporan Analisis dan Transaksi Keuangan, or“PPATK”);
- reporting any unusual crypto-asset transactions to the Head of Bappebti;
- apply travel rules principles with the terms below:
- In the event that the movement or transfer of crypto assets is more than or equal to the value in rupiah which is equivalent to USD 1,000 (one thousand US dollars), including the name, wallet address, identity document, address, as well as the place and date of birth of the sender; and
- In the event that the movement or transfer of crypto assets is less than the value in rupiah which is equivalent to USD 1,000 (one thousand US dollars), includes the information of the sender’s name and wallet address, as well as the receiver’s name and wallet address.
- apply to know your transaction principles.
Gaffar & Co., Indonesian Boutique Law Firm which specializes and focuses on commercial law areas e.g. Investment Regulatory, and Information & Technology
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