Now that Indonesia has officially recognized cryptocurrency as a commodity, this may be the right time for India to follow the lead.
Indonesia has not only categorized cryptocurrencies like Bitcoin under “commodity” but also set guidelines for cryptocurrency exchanges. Traders in the country can legally deal in virtual currencies now.
According to the Indonesian Trade Ministry Futures Exchange Supervisory Board, cryptocurrency exchanges have to keep a record of its transactions for at least five years. The exchanges must also employ IT security experts and have departments like client support, audit, legal etc.
In addition, the exchanges must have one of its servers domiciled in Indonesia. The regulations for cryptocurrency exchanges are set now even though those have been operative in the country since 2014.
The Indian government set up a panel as early in April 2017 to understand how the virtual currency works. As India moves closer to regularizing cryptocurrency, experts believe that treating cryptocurrency as a commodity will solve many issues.
In India, a number of cryptocurrency exchanges have been operative for some years now. Cryptocurrency exchanges in India are willing to offer more security to its customers. The companies are willing work with the government to create a regulatory framework.
A senior government official told Quartz last year that nobody was considering banning cryptocurrencies altogether. The official did talk about the possibility of treating cryptocurrency as a commodity.
“The issue here is about regulating the trade and we need to know where the money is coming from,” the official said. “Allowing it as (a) commodity may let us better regulate trade and so that is being looked at.”
Meanwhile, in Indonesia, cryptocurrency will be treated as a commodity. And, exchange regulations allow it to be traded in futures and spot trading market, Bitcoinist reported.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]