CoFTRA Allows Business Entity And Law To Invest In Crypto Assets

Illustration. (Photo: Unsplash)

JAKARTA - The CoFTRA Regulation No. 9 of 2024 now opens up opportunities for crypto investment for business entities and legal entities. This step is a major foothold in the digital asset industry in Indonesia, where existing regulations facilitate and expand investment access from individuals who have previously reached corporations. Thus creating new opportunities for industry players to use crypto as an investment instrument.

In the latest regulation of CoFTRA set on October 16, 2024, it is stated that business entities and legal entities are now recognized as new types of customers on the crypto exchange. This type of customer called "non-individual person" includes various forms of business and legal entities, including Limited Companies (PT), Commandier Alliance (CV), and Cooperatives. The regulation amended previous regulations regarding the physical market trading of crypto assets in Indonesia.

The CoFTRA regulation also states that crypto accounts created by business entities or legal entities can only be used for investment purposes and are not allowed as means of payment or goods and services transactions. Kasan, Head of CoFTRA, emphasized that this precautionary principle aims to maintain the conduciveness of the digital asset industry in Indonesia.

INDODAX CEO, Oscar Darmawan, expressed his views on the positive impact of this policy on the digital asset industry in the country.

"This new policy of CoFTRA is a progressive step that will further encourage the development of the crypto asset industry in Indonesia. With the permission of business entities and legal entities to invest in crypto assets, growth and innovation opportunities for companies will be even wider open," said Oscar, Monday, November 4.

Oscar added that this regulation also shows how CoFTRA continues to be committed to the principle of prudence and consumer protection in a potentially developing industry.

"In this regulation, CoFTRA has set several strict provisions, including the application of the principles of Know Your Transaction (KYT) and integrated travel rules. We at INDODAX welcome these steps as an effort to create a safe and reliable ecosystem for all industry players, including corporations who can now participate as investors," he explained.

In addition, this regulation stipulates that crypto funds or assets used for investment must be sourced from the internal assets of these business entities or legal entities and not from third parties or the results of unlawful acts, in accordance with statements that must be submitted by the company.

"This policy reflects CoFTRA's commitment to maintaining transparency and integrity in the crypto asset market, especially in ensuring that investment comes from legitimate and regulatory sources of funds," Oscar continued.

In order to support this regulation, INDODAX is ready to provide services that are in accordance with CoFTRA regulations and continue to innovate in providing a safe and easy experience for business people who want to invest in crypto assets. Oscar hopes that with the opening of investment access for corporations, more and more companies can see crypto assets as part of their diversification and financial innovation strategies.

"We believe that with the wider adoption of corporations, the crypto asset industry in Indonesia will continue to grow, making Indonesia one of the key players in the global digital economy," concluded Oscar.