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CoFTRA Tightens Supervision of Crypto Asset Trading

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The Commodity Futures Trading Supervisory Agency (CoFTRA) of the Ministry of Trade has tightened supervision of crypto asset trading and continues to educate and improve public literacy.

This has been done in order to provide legal certainty so that people who will transact get clear and legal information regarding the crypto assets being traded and prospective physical crypto asset traders (CPFAK) registered with CoFTRA.

“CoFTRA continues to intensify education on correct and safe procedures for transacting crypto assets, transaction mechanisms, related regulations, as well as investment risks and problem solving procedures. Especially at this time, there are many websites and applications that offer investment to the public, but they cannot be accounted for,” explained Acting Head of CoFTRA, Didid Noordiatmoko.

Didid said CoFTRA continues to monitor CPFAK off site and on site. Offsite supervision is carried out on routine and periodic reports submitted by CPFAK via electronic mail (e-mail) or an electronic reporting system connected to CoFTRA. Meanwhile, on-site supervision is carried out directly, both routinely and from time to time, based on risk mapping calculations. Didid added, every CPFAK and crypto asset products traded must be registered with CoFTRA. Any type of crypto asset that does not comply with CoFTRA regulations cannot be traded in Indonesia.

“New crypto assets to be traded must be registered with CoFTRA. Registration can be done through a registered CPFAK. Furthermore, the assessment will be carried out based on the rules that have been set. The determination of crypto assets is carried out through the Analytical Hierarchy Process (AHP) assessment method which has several assessment criteria, “said Didid.

CoFTRA has issued CoFTRA Regulation No. 8 of 2021. In this regulation, the conditions for crypto assets that can be traded on the physical market of crypto assets are stated. Crypto assets that can be traded domestically refer to CoFTRA Regulation No. 7 of 2020 concerning the Establishment of a List of Tradeable Crypto Assets. in the Crypto Asset Physical Market.

According to Didid, CoFTRA has registered 25 CPFAK and designated 229 types of crypto assets that can be traded on the physical crypto asset market. Thus, CPFAK can only trade types of crypto assets that have been determined by the Head of CoFTRA.

Head of the PBK Guidance and Development Bureau, Tirta Karma Senjaya, added that physical trading of crypto assets is one of the commodities that people are very interested in lately.

CoFTRA noted that crypto asset transaction data is increasing rapidly. This can be seen from the transaction value in 2021 of IDR 859.4 trillion, an increase of 1,224-percent compared to 2020 which was recorded at IDR 64.9 trillion. In addition, an increase can be seen from transactions from January to June 2022 which have reached Rp 212 trillion. Until June 2022, crypto asset customers in Indonesia are recorded to have 15.1 million customers.

“With the high interest of people investing in the field of physical trading of crypto assets, the public is asked to first understand correctly the products and trading mechanisms,” said Tirta.

  • First, Tirta suggested that the public should become customers of companies that have a registration certificate from CoFTRA.
  • Second, ensure that the funds used are legally generated surplus funds and not funds used for daily needs.
  • Third, invest funds for types of products that have been determined by CoFTRA.
  • Fourth, study the risks that may arise and the development of commodity prices that occur due to fluctuating prices.
  • Finally, never believe in promises of high or fixed profits. “Before deciding to invest, first know the profile and legality of CPFAK by accessing CoFTRA’s official website at the link https://www.bappebti.go.id,” said Tirta

 

Source: Press Release from The Ministry of Trade of The Republic of Indonesia

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