BAPPEBTI Visited IOST Beijing Office, IOST Invited To Be Indonesian Government Consultant
Indonesia, with a significant population of more than 267 million, is quite famous for its openness towards innovation and new opportunities. The country has seen exponential growth in the crypto market since 2014. According to Indodax (The Indonesia Digital Asset Exchange), the biggest and only licensed cryptocurrency exchange, as of September 2019, it gained 1.7 million registered users and more than 7 million dollars or Rp 100 billion worth of transaction each day. Comparing to its 100-year-old stock market, which has only around 1.3 million registered participants (according to Indonesia Central Securities Depository), the Indonesian crypto market has significant momentum and potential.
BAPPEBTI Visited IOST Beijing Office For Exchanges And Experience
BAPPEBTI (the Commodities and Futures Trading Regulatory Agency In Indonesia) was launched in 2005. It functions as the sole agency regulating different types of financial entities as well as its crypto market. The BAPPEBTI comes directly under the supervision of the Ministry of Finance and is run by an administrative board of members represented by industry experts nominated by the Indonesian Government.
On Dec 13th, four representatives from BAPPEBTI, including Cakra Buana (Head of Administration Division), Mochd Yusuf Affandi (Head of the Transaction Monitoring Division) and Poppy Juliyanti (Head of Sub. Data and Information Technology Development Division) flew from Jakarta to Beijing and visited IOST Beijing office as their first stop in China.
BAPPEBTI Invited IOST To Be Legally Traded In Indonesia And Perform As A Government Consultant
After a warm reception and an office tour, IOST CTO Terry and BAPPEBTI representatives had a two-hour meeting regarding the blockchain and crypto industry. Terry first gave a brief introduction about IOST, a scalable and decentralized blockchain project powered by its unique and original consensus mechanism — Proof of Believability, with a well-developed mainnet, advanced DApp ecosystem, as well as large user base and nodes community.
Cakra Buana, the Head of Administration Division extended her appreciation for the warm reception and told Terry that as BAPPEBTI is working to improve its regulation on crypto market and enhance protection for traders, they are visiting several leading blockchain projects all around the world for experience and reference, and IOST was chosen as their first stop.
Terry continued to explain IOST’s development path and its collaboration module as a service provider for governments around the world. When being asked that if there have been any suspicious transactions on IOST, Terry answered no but admitted that one or two third-party DApps may have had problems. However, whenever that occurs, IOST would always communicate with the team and try to prevent the same problem from happening again.
Insightful exchanges on regulation took a leading role in the meeting. BAPPEBTI officials shared that crypto-assets like Bitcoin can now be traded legally, authorized by regulation №5/2019. This regulation is designed to protect citizens who want to invest in crypto-assets and provide legal assurance. BAPPEBTI is now working to improve the process of evaluating and issuing licenses for exchanges and tokens that can legally operate in Indonesia. The process is likely to include a risk assessment, trading volume monitoring, and a requirement on paid-up capital minimum, etc. BAPPEBTI also invited IOST to apply to be listed on exchanges in Indonesia.
At the end of the meeting, BAPPEBTI representatives expressed their recognition for IOST technology and its business module, and also their hope in future collaboration with IOST, where IOST can provide consulting services for the Indonesian government when conducting explorations in asset tokenization.