An Indonesian cryptocurrency exchange platform named Tokocrypto says it has become the first platform to officially register with the country’s financial regulator, the Commodity Futures Trading Regulatory Agency (known locally as Bappebti).
Recently introduced legislation means crypto exchanges in the country must first register with Bappebti for permission to operate as a registered platform, and show the regulator they have adequate information security management system (ISMS) resources in place, prove financial resources and implement security standards.
Bappebti will require further checks before it grants Tokocrypto with a full operating permit, but no company has ever passed the crucial registration stage before.
Per media outlet Detik, Tokocrypto claims it has obtained ISO 27001 ISMS certification for its platform.
The company’s CEO was quoted as saying that “Becoming the first exchange to register with Bappebti is an extraordinary achievement for Tokocrypto, and brings us a step closer to obtaining full permission.”
Bappebti traditionally polices conventional commodities, as well as forex trading and gold futures, but in February this year was also tasked with regulating crypto exchanges. Under the new rules, platforms must first register and then win final approval before winning legal operating status.
The stringent regulations stipulate that exchange operators must prove they have capital assets of at least USD 106 million upon launch, and maintain a balance of at least USD 85 million.
Leading South Korean exchanges such as Upbit and Coinone have previously launched trading platforms in Indonesia and other South East Asian nations.
Meanwhile, in August, Facebook‘s WhatsApp was reportedly “in advanced talks” with several digital payments firms and a major bank in Indonesia as it looks to launch a digital payment service in the country.
Indonesia is the world’s fourth most populous nation, the world’s 10th largest economy in terms of purchasing power parity, and a member of the G-20. An emerging middle-income country, Indonesia has made enormous gains in poverty reduction, cutting the poverty rate to more than half since 1999, to 9.8% in 2018, according to the World Bank.