‹ Back

Digital Gold Rules to Avoid Illegal Trading

 

The Ministry of Trade (Kemendag) through the Commodity Futures Trading Regulatory Agency (Bappebti) has issued regulations to ensure legal certainty and business certainty of digital gold physical trading in the Indonesian market. The rules are contained in Bappebti Regulation No. 4 of 2019 concerning Technical Provisions for the Implementation of Digital Gold Physical Market in Commodity Futures Exchanges.

 

"The regulation of digital gold trading aims to prevent the use of physical digital gold trading for illegal purposes, such as money laundering and terrorist financing. In addition, it aims to create an easy, safe, and affordable investment vehicle for the public," said Bappebti Head Tjahya Widayanti, as quoted from the Kemendag website on Monday (23/9).

 

The legal basis for the issuance of these regulations is Law No. 32 of 1997 concerning Commodity Futures Trading, as amended by Law No. 10 of 2011, Minister of Trade Regulation No. 119 of 2018 concerning the General Policy of Digital Gold Physical Market Trading in Commodity Futures Exchanges.

 

In the Bappebti regulations, gold traded on the physical market is pure gold with a minimum aurum (au) content of 99.9 percent. It also has a certificate that includes the gold serial code, logo, and weight, and the gold units are in weight, namely 1 gram, 2 grams, 5 grams, 10 grams, 25 grams, 50 grams, 100 grams, 250 grams, and 1,000 grams.

 

The gold can be stored in a storage facility managed by a Gold Storage Place Manager that meets certain requirements. Meanwhile, there are two mechanisms for Bappebti-approved digital gold physical market transactions. The first is a physical market transaction mechanism with transaction matching on the Futures Exchange.

 

The second is a physical market transaction mechanism with transaction matching in digital gold physical trading whose trading infrastructure must be directly connected to the Futures Exchange and the Futures Clearing House.

 

The requirements to become a digital gold physical trader are that the company must be a limited liability company (PT), have adequate facilities and infrastructure to carry out commodity trading, be a member of the futures exchange and clearing institution, have a cooperation agreement and obtain a recommendation from the futures exchange. In addition, they must have a separate account specifically used to facilitate physical digital gold trading and complete other required documents.