“List of New Crypto Assets Issued by Indonesia Commodity Futures Trading Authority (CoFTRA) Brings Pros and Cons. What’s CoFTRA’s Answer?”

JAKARTA, Indonesia, 20 September 2022 /PRNewswire/ — The list of crypto-assets tradable on the physical crypto-asset market has been officially issued by the Commodity Futures Exchange Supervisory Agency (CoFTRA) as an institution under the auspices of the Ministry of Commerce, in Regulation No. 11 of 2022, hereinafter referred to as ” Perba No. 11 of 2022″.

However, the issuance of Perba No. 11 of 2022 increases the advantages and disadvantages for business actors, especially for several local token or coin projects previously listed on the Crypto Asset List tradable on CoFTRA’s physical crypto asset market (positive list) that were excluded from the list.

No doubt, the business players again asked about the transparency of the token or coin value done by CoFTRA. As we all know, stated in Perba No. 8 of 2021 article 4 paragraphs (1) and (2) which discuss the function of the Crypto Assets Committee, namely to provide assessments and/or advice to CoFTRA in relation to the activities to foster and develop physical market trading of crypto assets. Meanwhile, Perba No. 11 of 2022 explains in Article 2 that potential Crypto Asset Physical Traders or Crypto Asset Physical Traders may submit proposals for the addition and/or reduction of Crypto Assets in the list of Crypto Assets traded in the Crypto Asset Physical Market that must be considered jointly by the Crypto Asset Futures Exchange and the Crypto Assets Committee so that the evaluation task is carried out by the Crypto Asset Assessment Team. However, considering that the Crypto Asset Committee and the Crypto Asset Assessment Team have not yet been formed, the assessment for the implementation of the review process for the proposed addition and reduction of Crypto Assets and the evaluation of CoFTRA is carried out together with the Association for crypto asset trading activities, and all business actors within Crypto Assets Physical Market Trading which is registered with CoFTRA.

The story continues

But what is the fate of the assessment and determination of the Positive List now and in the future? Asih Karnengsih, as chairman of the Indonesian Blockchain Association (ABI) hopes “To ensure that coins or tokens that will be traded in Indonesia get equal and fair opportunities in the valuation process, CoFTRA’s plan in Perba 11 is good, namely the formation of a Crypto Asset Assessment Team, so that the assessment process can be more transparent and objective because it involves a professional team from the non-profit Indonesian Blockchain Association and its administrators which is not affiliated with any company. The establishment of a Crypto Asset Assessment Team will soon be very helpful in maintaining the auspiciousness of the crypto industry i Indonesiaespecially since the issuance of the new positive list”.

CoFTRA Head of Legislation and Enforcement Bureau (Rorundak), Aldison explained that “CoFTRA is in the process of preparing a decree from the Head of CoFTRA regarding the Crypto Asset Assessment Team whose task is to carry out one of the tasks of the Crypto Assets Committee, which will conduct a assessment and evaluation of the Crypto Assets list, later the Crypto Asset Assessment Team will consist of elements from CoFTRA, associations and representatives of industry players who have registered with CoFTRA”. Aldison also explained the results of the assessment of the list of crypto assets that can be traded on CoFTRA, which is contained in Perba No. 11 of 2022, according to Aldison “CoFTRA as a regulator must determine this and most importantly there must be a prior assessment/evaluation by CoFTRA of Crypto Assets so that not all Crypto Assets are released into the market and traded freely to audience, while the current level of literacy in our society is still not good.

From the business side, HARA hopes that the formation of the Crypto Asset Assessment Team will soon be formalized to avoid questions leading to the current crypto asset valuation mechanism. According to HARA, “With the Crypto Asset Assessment Team formed by CoFTRA, the market entry selection process for this crypto asset will be good enough. So the results from their positive list should already have good credibility as an investment product.”

Tirta Karma Sanjaya, who heads CoFTRA’s Market Development and Extension Agency, said that “Delisted Crypto Assets are projects that do not meet the valuation standards required by CoFTRA Regulation No. 8 of 2021 on Guidelines for the Implementation of Physical Market Trading of Crypto Assets on the Futures Exchange. In Article 3. Currently, the evaluation of the proposed addition and/or reduction of Crypto Assets and the evaluation is carried out by the Crypto Asset List Assessment Team consisting of CoFTRA, associations and business actors in the field of Crypto Asset Physical Market Trading registered with CoFTRA. In the future, an assessment of new crypto-assets be carried out by the Crypto Asset Committee if formed The Crypto Asset Committee consists of elements from CoFTRA, related ministries and institutions, Futures Exchange which organizes the Physical Crypto Asset Market, Futures Clearing House which organizes the C rypto Asset physical market, associations, academics and practitioners.”

Didid Noordiatmoko, The Act. Head of CoFTRA also spoke about this, Didid said that “Local token/coin projects issued from the positive list can be resubmitted to CoFTRA after conducting evaluations and improvements according to the requirements of CoFTRA Regulation No. 8 of 2021 on guidelines for the implementation of physical trading markets for cryptoassets in the Futures Exchange, Article 3 is as follows:

• Based on distributed Ledger technology;

• In the form of Utility Crypto Assets or Crypto Backed Assets;

• Already have the results of an assessment using the Analytical Hierarchy Process (AHP) method determined by CoFTRA (the threshold for the AHP value is 6.5). The results of the assessment using the Analytic Hierarchy Process (AHP) must take into account the following provisions: (i) Market value (market value) Crypto Assets (coin market value); (ii) Enter into transactions on the world’s largest exchanges for cryptoassets; (iii) Has economic benefits, such as taxation, growth in the digital economy, the information technology industry and the expertise of IT experts (digital talent); and, (iv) a risk assessment has been carried out, including the anti-money laundering and prevention of the financing of terrorism (APU-PTT) and proliferation of weapons of mass destruction risks.

With evaluation and improvement from the developer, local cryptoasset tokens/coins that are traded are expected to provide security and minimize the risk of investing for the community.” In addition, Didid also advised “People who want to invest in cryptoassets are expected to first understand well what Crypto Assets are and their trading mechanisms, become clients of Crypto Asset Physical Traders who have a certificate of registration from CoFTRA, invest in Crypto Assets that are registered. determined by CoFTRA, the funds used to invest are produced legally and not funds used for daily needs, understand the risks that may arise and do not believe in promises of fixed or high profits.

SOURCE Asosiasi Blockchain Indonesia