As more companies are becoming interested in the cryptocurrency market and making investments, some countries have set up regulations.
In most parts of South-East Asia, the trading of cryptocurrencies is considered a religious crime. However, the tides could turn very soon, and lovers of cryptocurrencies will be able to trade legally.
According to a report by CNBC Indonesia dated 30th January, CoFTRA made an announcement. CoFTRA (Commodity Futures Trading Supervisory Agency) is responsible for regulating cryptocurrencies in Indonesia. The regulatory body has allowed the trading of digital currencies in the country.
Although the trading of digital currencies is now permitted in Indonesia, not all coins were approved. The agency considered the cryptos that did not make the approved list unsafe. The good news is that more than 200 coins were shortlisted.
Coins That Were Approved
Some coins that CoFTRA has approved are XRP, Bitcoin [BTC], Cardano [ADA], Ethereum [ETH], Solana [SOL], Polkadot [DOT], Dogecoin [DOGE], Tether [USDT], and Chainlink [LINK].
This list is good news for citizens of Indonesia who have invested in cryptocurrencies. Most of the popular coins were approved, with only some missing out. These coins will be banned in the country, and trading them will be illegal.
One of the coins absent from the list is the popular meme coin, Shiba Inu [SHIB]. Although SHIB was not shortlisted, another meme coin, DOGE, was shortlisted.
Many people might be wondering why some coins were approved and others not. CNBC reported that the agency used the market cap and coin score on the site, CoinMarketCap to select those they believed were safe for Indonesians.
The coin’s road map, scalability, security, founders and blockchain governance are other factors considered.
Before the announcement made by CoFTRA, the Financial Services Authority had placed a ban on digital assets. This ban was to prevent financial institutions from exploring the crypto market.
This revelation was terrible news for millions of people in Indonesia, as more than 2% of the population had invested in cryptocurrencies.
Leaders of religious groups are not happy about crypto usage as it does not abide by the Shariah law. One of such groups is the National Ulema Council which does not want Muslims to get involved with digital currencies. Whether the permit by CoFTRA will stand, only time will tell.
The NFT Crypto Firms Show Interest In Indonesia
Hopefully, with the update from CoFTRA, investors and lovers of cryptocurrencies can do business in Indonesia legally. It is only a matter of time before other crypto exchange firms start coming into the country.
At the moment, crypto firms such as Binance have already settled down in Indonesia. Bitkub, the largest crypto firm in Thailand, has also shown interest in Indonesia.