Bappebti Regulation No. 9 of 2024 on the Third Amendment to Regulation No. 8 of 2021 Regarding Guidelines for Physical Crypto Asset Trading on Futures Exchanges

COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION NUMBER 9 OF 2024 CONCERNING THE THIRD AMENDMENT TO COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION NUMBER 8 OF 2021 CONCERNING GUIDELINES FOR THE ORGANIZATION OF PHYSICAL MARKET TRADING FOR CRYPTO ASSETS (CRYPTO ASSET) ON FUTURES EXCHANGES BY THE GRACE OF THE ALMIGHTY GOD

HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY OF THE REPUBLIC OF INDONESIA,

Considering: a. that to encourage the formation of a mechanism for organizing Physical Crypto Asset (Crypto Asset) trading on Futures Exchanges that is trustworthy and reliable, and to broaden opportunities for the public to conduct Physical Crypto Asset trading while prioritizing legal certainty and protection for the public and business actors, it is necessary to adjust the regulations governing the guidelines for organizing Physical Crypto Asset trading on Futures Exchanges; b. that based on the considerations as referred to in letter a, it is necessary to amend the Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges, which has been amended several times, lastly with Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2024 concerning the Second Amendment to Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges;

Recalling: 1. Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720) as amended by Law Number 10 of 2011 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232); 2. Government Regulation Number 49 of 2014 concerning the Organization of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 2014 Number 143, Supplement to the State Gazette of the Republic of Indonesia Number 5548); 3. Presidential Regulation Number 68 of 2019 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2019 Number 203) as amended by Presidential Regulation Number 32 of 2021 concerning Amendments to Presidential Regulation Number 68 of 2019 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2021 Number 106); 4. Presidential Regulation Number 11 of 2022 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2022 Number 19); 5. Minister of Trade Regulation Number 99 of 2018 concerning General Policies for the Organization of Crypto Asset (Crypto Asset) Futures Trading (State News of the Republic of Indonesia Year 2018 Number 1395); 6. Minister of Trade Regulation Number 29 of 2022 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2022 Number 492); 7. Commodity Futures Trading Regulatory Agency Regulation Number 2 of 2019 concerning the Organization of Physical Commodity Markets on Futures Exchanges as amended by Commodity Futures Trading Regulatory Agency Regulation Number 10 of 2019; 8. Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges as amended several times, lastly with Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2024 concerning the Second Amendment to Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges;

DECIDES: To establish: COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION CONCERNING THE THIRD AMENDMENT TO COMMODITY FUTURES TRADING REGULATORY AGENCY REGULATION NUMBER 8 OF 2021 CONCERNING GUIDELINES FOR THE ORGANIZATION OF PHYSICAL MARKET TRADING FOR CRYPTO ASSETS (CRYPTO ASSET) ON FUTURES EXCHANGES.

Article I Several provisions in the Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges, as amended several times, lastly with Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2024 concerning the Second Amendment to Commodity Futures Trading Regulatory Agency Regulation Number 8 of 2021 concerning Guidelines for the Organization of Physical Crypto Asset (Crypto Asset) Trading on Futures Exchanges, are amended as follows:

1. The provision of letter b paragraph (2) of Article 8 is amended and after paragraph (2) of Article 8, 1 (one) paragraph is inserted, namely paragraph (3), so that Article 8 reads as follows:

Article 8 (1) In addition to fulfilling obligations as regulated in Bappebti Regulations governing the organization of physical commodity trading on Futures Exchanges, Futures Exchanges are obligated to: a. provide reliable system facilities for the orderly, transparent, and fair implementation of reporting and supervision of the Physical Crypto Asset Market; b. conduct market supervision over all Physical Crypto Asset trading transactions, including auditing their members; c. provide access to reliable and real-time supervision and reporting systems to Bappebti for supervision purposes; d. take steps to ensure the proper implementation of Physical Crypto Asset trading mechanisms and report to Bappebti; e. evaluate Crypto Assets that have been traded in the Physical Crypto Asset Market; and f. conduct studies on proposals to add or reduce types of Crypto Assets and submit the results of their studies to Bappebti. (2) In addition to having rights as regulated in Bappebti Regulations governing the organization of physical commodity trading on Futures Exchanges, Futures Exchanges have the right to: a. accept or reject prospective members of the Exchange who apply to become Physical Crypto Asset Traders; b. establish and collect membership fees and other fees for services provided to their members, the amount of which considers the principles of efficiency and fairness; c. jointly with the Futures Clearing Institution establish the substance and procedures for reporting related to Crypto Asset transactions, financial reports, and/or other reports required for supervision that must be submitted by Physical Crypto Asset Traders; d. establish complaint mechanisms and dispute resolution related to Crypto Asset trading at Physical Crypto Asset Traders; e. request confirmation or additional explanations for reports and information required from Physical Crypto Asset Traders; f. take actions deemed necessary to secure Crypto Asset transactions at Physical Crypto Asset Traders or Crypto Asset Storage Facility Managers, including preventing possible manipulation; g. impose sanctions or specific actions on Physical Crypto Asset Traders if they violate legislation; and h. submit recommendations to Bappebti for temporary suspension, in the event of conditions that threaten the organization of Physical Crypto Asset trading on Futures Exchanges. (3) Provisions regarding the establishment and collection of membership fees and other fees for services provided to their members as regulated in paragraph (2) letter b are further regulated in the regulations and bylaws of the Futures Exchange.

2. The provision of letter b paragraph (2) of Article 12 is amended and after paragraph (2) of Article 12, 1 (one) paragraph is inserted, namely paragraph (3), so that Article 12 reads as follows:

Article 12 (1) In addition to fulfilling obligations as regulated in Bappebti Regulations governing the organization of physical commodity trading on Futures Exchanges, Futures Clearing Institutions are obligated to: a. provide reliable system facilities for the guarantee and settlement of Physical Crypto Asset trading transactions; b. supervise the settlement of Physical Crypto Asset trading transactions; c. guarantee and settle Physical Crypto Asset trading transactions over funds stored in separate accounts at the Futures Clearing Institution in an orderly, smooth, and cautious manner; d. take steps to ensure the proper settlement of Physical Crypto Asset trading transactions and report to Bappebti; e. be responsible for funds stored in separate accounts at the Futures Clearing Institution; f. provide facilities for real-time receipt and withdrawal of funds to Crypto Asset Customers; g. have a cooperation agreement with Payment Gateway service providers, in the event that Physical Crypto Asset Traders utilize Payment Gateway services; h. ensure the settlement of rights and obligations of Physical Crypto Asset Traders and Crypto Asset Customers in the event of breach of contract; i. cooperate with Crypto Asset Storage Facility Managers for the guarantee and settlement of Physical Crypto Asset trading transactions; j. supervise Crypto Asset Customer funds stored in accounts separate from Physical Crypto Asset Traders; k. supervise Crypto Asset Customer and Physical Crypto Asset Trader funds stored in separate accounts at the Futures Clearing Institution; l. have separate accounts from those used in Commodity Futures Trading and/or other Physical Markets; m. guarantee the confidentiality of financial position information and Physical Crypto Asset trading activities, except where such information is provided in the implementation of legislation; n. prepare detailed and separate records and reports of all activities related to Physical Crypto Asset trading; o. have a unit under the Board of Directors tasked with and functioning to handle the organization of Physical Crypto Asset trading; p. document and properly store all data related to Physical Crypto Asset trading activities; and q. submit periodic and/or ad hoc reports on the settlement of Physical Crypto Asset trading transactions to Bappebti, the procedures, content, and format of which are further regulated by Bappebti Regulation. (2) In addition to having rights as regulated in Bappebti Regulations governing the organization of physical commodity trading on Futures Exchanges, Futures Clearing Institutions have the right to: a. accept or reject prospective Futures Clearing Members who apply to become Physical Crypto Asset Traders; b. establish and collect membership fees and other fees for services provided to their members, the amount of which considers the principles of efficiency and fairness; c. jointly with the Futures Exchange establish the substance and procedures for reporting related to Crypto Asset transactions, financial reports, and/or other reports required for supervision that must be submitted by Physical Crypto Asset Traders; d. take actions deemed necessary to secure the settlement of Crypto Asset transactions at Physical Crypto Asset Traders or Crypto Asset Storage Facility Managers, including preventing possible manipulation; e. recommend Crypto Asset Storage Facility Managers to manage storage facilities for the storage, maintenance, supervision, and/or delivery of Crypto Assets to obtain approval from the Head of Bappebti; f. receive transaction data from Physical Crypto Asset Traders in real-time; g. receive records and/or change records of Crypto Asset ownership stored at storage facilities to the Crypto Asset Storage Facility Manager; h. receive funds from Physical Crypto Asset Traders through payment channels provided by the Clearing Institution in an integrated manner; i. receive trading transaction reports from the Futures Exchange and Physical Crypto Asset Traders in real-time; j. ensure the correspondence between the monetary value and number of Crypto Assets between transaction records and the actual conditions recorded in the separate accounts at the fund-depositing bank and the number of Crypto Assets stored at the Crypto Asset Storage Facility Manager; k. only accept guarantee and settlement of Crypto Asset transactions that have been established by Bappebti in the list of Crypto Assets that can be traded in the Physical Crypto Asset Market; l. monitor the activities and financial conditions of Physical Crypto Asset Traders; m. conduct routine or special audits of Physical Crypto Asset Traders or their members; and n. impose sanctions in the form of temporary restrictions (suspension), freezing, and revocation of membership of Physical Crypto Asset Traders who do not meet financial and reporting requirements, after prior consultation with Bappebti in accordance with legislation in the field of Commodity Futures Trading and this Agency Regulation. (3) Provisions regarding the establishment and collection of membership fees and other fees for services provided to their members as regulated in paragraph (2) letter b are further regulated in the regulations and bylaws of the Futures Clearing Institution.

3. The provision of letter a paragraph (6) of Article 16 is amended, so that it reads as follows:

Article 16 (1) In addition to fulfilling obligations as regulated in Bappebti Regulations governing the organization of Physical Commodity Trading on Futures Exchanges, Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders must fulfill the following provisions: a. share ownership through domestic investment by Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders over the shares of Prospective Physical Crypto Asset Traders or other Physical Crypto Asset Traders is maximum 20% (twenty percent) and must be reported to the Head of Bappebti; b. share ownership through foreign investment with the same business model or activities as Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders can only be conducted in 1 (one) Prospective Physical Crypto Asset Trader or Physical Crypto Asset Trader; c. Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders are prohibited from having affiliated receivables; d. submit applications to Bappebti whenever there are changes in management, address, company name, share ownership, systems, and trading rules owned or other changes including the opening of branch offices or offices other than the head office to obtain approval from the Head of Bappebti; e. provide and/or open access to all systems used to Bappebti for supervision purposes with read-only access rights; f. participate in education and counseling required for the development of Crypto Asset trading; g. submit periodic and ad hoc reports on the implementation of Crypto Asset trading, the format and content of which are further regulated by the Head of Bappebti; h. submit business plans and reports on the achievement of business plans regarding transaction activities, submitted periodically together with periodic reports as referred to in letter g; i. present electronic records of transactions and buy/sell orders conducted by Crypto Asset Customers in the trading system owned by Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders, which can be directly accessed by Crypto Asset Customers; j. guarantee that orders submitted by Crypto Asset Customers are recorded in the order book of the trading system owned by Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders in real-time and that the content corresponds to the mandate of the Crypto Asset Customer's order; k. provide a slipperiness note feature related to notifications of significant price movements of Crypto Assets; l. provide the same features to all Customers in the online trading system and/or facilities regarding transaction execution for all types of Crypto Assets; m. organize literacy and education activities in the form of seminars, promotions, workshops, training, or similar activities related to Physical Crypto Asset trading for the public, the material or literacy materials of which must be reported to Bappebti at least 5 (five) working days before the implementation date; n. implement anti-money laundering and counter-terrorism financing and counter-proliferation of weapons of mass destruction programs in accordance with Bappebti Regulations and legislation governing the implementation of anti-money laundering and counter-terrorism financing and counter-proliferation of weapons of mass destruction programs; o. report every suspicious financial transaction to the Head of the Center for Reporting and Analysis of Financial Transactions, and other reporting obligations in accordance with legislation governing the implementation of anti-money laundering and counter-terrorism financing and counter-proliferation of weapons of mass destruction programs; p. report every unusual Crypto Asset transaction to the Head of Bappebti; q. participate in every coordination and cooperation with Bappebti, authorities, or other ministries/agencies; r. have at least 3 (three) Board of Directors members, 2/3 (two-thirds) of whom must be Indonesian Citizens domiciled in Indonesia; s. have at least 2 (two) Board of Commissioners members, 2/3 (two-thirds) of whom must be Indonesian Citizens domiciled in Indonesia; t. have a Chief Executive Officer who is an Indonesian Citizen; u. in the event that Board of Directors or Commissioners members are foreign citizens, they must possess and submit to Bappebti documents in the form of permanent or temporary residence permits proven by Permanent Stay Permit Cards (KITAP) or Limited Stay Permit Cards (KITAS); v. have an office or domicile in a city or regency area within the Unitary State of the Republic of Indonesia as stated in the company's articles of association, which is a physical office serving as the head office of the Prospective Physical Crypto Asset Trader or Physical Crypto Asset Trader, which is not a shared office, co-working space, or virtual office; w. the number of Crypto Assets belonging to Crypto Asset Customers recorded at Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders must correspond to the number of Crypto Assets stored by Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders; and x. submit feedback data on the follow-up of population data utilization in accordance with legislation. (2) The term "affiliated parties" as referred to in paragraph (1) letter c means having: a. family relationships due to marriage and descent up to the second degree, both horizontally and vertically; b. relationships between the Party and employees, directors, or commissioners of said Party; c. relationships between two companies that have one or more common Board of Directors members or Board of Commissioners members; d. relationships between a company and a Party, directly or indirectly, that controls or is controlled by said company; e. relationships between two companies controlled, directly or indirectly, by the same Party; or f. relationships between a company and major shareholders. (3) Control over companies as referred to in paragraph (2) can be done in the following ways: a. owning more than 20% (twenty percent) of shares individually or jointly; b. directly and/or indirectly managing and/or influencing company policy; c. having option rights or other rights to own shares that, if exercised, would cause the party to own and/or control 20% (twenty percent) or more of the company's shares, either individually or jointly; d. having the authority to appoint, approve, and/or dismiss company Board of Directors members and/or Board of Commissioners members; and/or e. other methods of control. (4) In the context of submitting applications as referred to in paragraph (1) letter d, Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders must submit the following document requirements: a. copies of the articles of incorporation of the legal entity and company amendments along with identity completeness data of management; b. a brief written explanation of the company's organizational structure along with duties and responsibilities, products, business processes, regulations and bylaws (trading rules), know your customer (KYC), know your transaction (KYT), and implementation of travel rules principles; c. proof of electronic system registration at the Ministry of Communication and Informatics for the systems used; d. company business plan and 24 (twenty-four) month financial projections; e. statement documents signed by the Chief Executive Officer regarding the readiness of the Physical Crypto Asset trading organization system, which has been simulated and functional application testing has been conducted; f. written statements or declarations on stamped paper regarding affiliations of business actors with other financial service providers and/or other services; and g. other data as listed in the Annex of this Agency Regulation. (5) Documents as referred to in paragraph (4) are adjusted to the subject matter of the change application submitted to Bappebti. (6) Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders in conducting their activities must observe the following provisions: a. Crypto Asset Customers can be individuals or non-individuals; and b. it is not permitted to facilitate trading of Crypto Assets created by themselves that can cause conflicts of interest with the scope of their activities; (7) Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders are prohibited from conducting other business activities other than as Physical Commodity Crypto Asset Traders. (8) Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders are prohibited from providing access or cooperating with other parties acting as agents or introducing brokers. (9) Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders are prohibited from providing access or cooperating with other parties conducting supporting activities to facilitate transactions related to Crypto Assets unless prior approval has been obtained from the Head of Bappebti. (10) Prospective Physical Crypto Asset Traders or Physical Crypto Asset Traders in organizing Physical Crypto Asset trading transactions have the right to: a. accept or reject prospective...