- Indonesia’s Commodity Futures Trading Supervisory Agency (CFTSA) recognizes 501 cryptocurrencies as commodities, signaling a contrast to U.S. regulations.
- This move by Indonesia could spearhead increased regional adoption of cryptocurrencies.
In a defining shift from the U.S. Securities and Exchange Commission’s (SEC) regulatory stance, Indonesia’s Commodity Futures Trading Supervisory Agency (CFTSA) has classified 501 cryptocurrencies as commodities. These include renowned digital assets such as Bitcoin, Ethereum, and Litecoin, which have been categorized as securities by the SEC in recent years.
On June 9, 2023, the Indonesian regulatory body, Bappebti, published an extensive list of 501 digital assets now considered commodities within the country. This roster of digital assets spans a wide array of popular cryptocurrencies, such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), USD Coin (USDC), and many others. This decision trails the Indonesian government’s announcement of a cryptocurrency exchange establishment in September 2022, triggering talks around new financial legislation to bolster cryptocurrency regulations.
Bappebti’s move is particularly notable in the wake of FTX’s demise, as the regulatory body directed cryptocurrency exchanges to suspend trading of FTX’s native token, FTT. This distinctly divergent approach to crypto regulation compared to U.S authorities reflects Indonesia’s unique position in the global crypto regulatory landscape. In the U.S., numerous crypto assets, including Telegram’s Gram Token (TON), Tron (TRX), and XRP, are classified as securities.
Indonesia’s innovative approach also aligns with the country’s broader push for de-dollarization and the BRICS nations’ plans to fortify non-U.S. fiat currencies. The Governor of the Bank of Indonesia, Perry Warjiyo, stated in April,
“Indonesia has initiated diversification of the use of currency in the form of LCT — The direction is the same as the BRICS. In fact, Indonesia is more concrete.”
Further echoing Indonesia’s stance, recent Chinese court rulings classify digital currencies and non-fungible tokens (NFTs) as property. As an example, in an April lawsuit involving the now-defunct crypto exchange Gatecoin, a Hong Kong judge determined that cryptocurrencies should be regarded as “property.”
With Indonesia leading the charge in recognizing 501 cryptocurrencies as commodities, it opens the door for other countries in the region to follow suit, paving the way for heightened regional adoption of these digital assets.
