Indonesian Bitcoin Traders Protest BTC Futures Capital Requirements

0
28

Stifling the Bitcoin Futures Trading Arena

According to The Jakarta Post, the Futures Exchange Supervisory Board (Bappebti) of the Indonesian Trade Ministry released regulations to govern cryptocurrency futures trading in the nation. Amongst these laws are minimum capital requirements for cryptocurrency futures traders and brokers.

Bitcoin traders in Indonesia are objecting what they call excessive capital requirements enforced by the government on cryptocurrency futures trading. The aggrieved brokers state the restrictive law is preventing anyone from participating in the market.

Article 8, paragraph 1 of the guidelines specify that crypto futures brokerage firms need a minimum paid-up capital of 1 trillion rupiah ($71.7 million). Likewise, article 24, paragraph 3 of the same set of regulations require Bitcoin futures traders to hold a minimum of 100 billion rupiah ($7.17 million), out of which the law mandates a minimum deposit of 80 billion ruppiah ($5.73 million).

Stakeholders in the industry state the transferred capital requirements far go beyond those stated for futures trading in mainstream possession classes.

Talking to Reuters, Oscar Darmawan, the CEO of Indodax, a cryptocurrency exchange platform, compared the capital requirements to that of mainstream futures agreements which stands at 2.5 billion rupiah ($179,000).

Back in mid-2018, Bitcoinist reported that Bappebti was legitimizing virtual currencies by classifying them as commodities. While the need to offer consumer security is genuine, a 40,000 percent dichotomy in capital requirement for cryptos and mainstream products futures trading is seen by market analysts as extreme.

According to Darmawan, these policies are detrimental to the development of the virtual currency industry. Reports show there have not been any transactions in the Indonesian cryptocurrency futures trading market to date.

Weekly Trading Volume Reaches New Heights

Meanwhile, BTC trading volume in Indonesia is presently on the rise.

Indonesia weekly Bitcoin trading volume

Information from Coin Dance reveals that Indonesians traded 102 BTC via Localbitcoins for the week ending February 9, 2019. This figure represents the country’s biggest weekly trading volume beating the previous record of 43 BTC set in early October 2016.

In terms of the rupiah, the new weekly BTC trading volume stands at 4.5 billion rupiah. The country’s peak bank prohibited making use of Bitcoin for payments back in December 2017, however trading cryptos isn’t forbidden.

Background History Of Bitcoin Trading

Around 2008, Satoshi Nakamoto established the very first cryptocurrency, Bitcoin. At the time, a paper discussing its mechanics and the ideology behind it was released through the Cryptography Newsletter.

The very first Bitcoin software application client was released in 2009, and Nakamoto collaborated with numerous other developers on the open-source group, never exposing his identity. By 2011, the enigmatic Bitcoin creator had vanished. His peers then, understood how valuable this cryptocurrency was and worked feverishly to develop it to its maximum capacity.

By October 2009, the world’s first Bitcoin exchange was developed, and by November of that year 4 million Bitcoins had been ‘mined’. At the time, $1 was the equivalent of 1, 309 Bitcoin– a portion of a penny. Thinking about how extensively Bitcoin fluctuates, that was a genuine steal: it hit the $10, 000 mark within eight years.

And so, the rise of the Bitcoin begun …

Image courtesy of coin.dance, Shutterstock

The post Indonesian Bitcoin Traders Protest BTC Futures Capital Requirements appeared first on Bitcoinist.com.

LEAVE A REPLY

Please enter your comment!
Please enter your name here