The government of Indonesia has released a list of over 500 cryptocurrencies, classifying them as commodities. Among the list announced by Bappebti, the Indonesian version of the US CFTC, are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Sandbox (SAND), Ripple (XRP), Polkadot (Dot), Cardano (ADA), and Solana (SOL) are among the cryptocurrencies listed.
The Indonesian classification is coming a few weeks after the US Securities and Exchange Commission (SEC) labeled some of the cryptocurrencies listed by Indonesia as securities. The US authority has been in a legal battle with several crypto companies, leading it to consider the full description of the labeled cryptocurrencies which differs from the classification given by the Indonesian government.
The declaration by the Bappebti, Indonesia’s regulatory authority, signifies the nation’s long journey in support of the crypto market. In 2022, Officials from Indonesia’s trade ministry and commodity futures trading regulatory agency affirmed their support for crypto exchanges entering the country while saying that citizens should be a major part of the leadership structure of such organizations.
In the first week of 2023, the Asian country also announced that it will be launching a national crypto exchange. According to the report, the exchange is intended to operate before full control and management of all crypto assets are moved from the Bappebti to the Financial Services Authority.
Didid Noordiatmoko, Head of the Financial Services Authority said that Bappebti, which is a subsidiary of the FSA, will be allowed to manage the exchange for two years prior to the transition.
Furthermore, Ridwan Kamil, the Governor of the West Java Provincial Government in Indonesia, who attended the recently concluded Bitcoin 2023 event in Miami expressed his support for Bitcoin.
He also called on world leaders to endeavor to understand the technology to enable them to enact laws and policies that will favor their respective nations.
The question on the minds of crypto enthusiasts is this: will BTC and other cryptocurrencies be classified as commodities or securities? What will be the implications of each classification?