On March 31 2020, Luno was officially registered on Indonesia's Commodity Futures Trading Regulatory Agency or in Indonesian called Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) with the certificate number of 007/BAPPEBTI/CP-AK/03/2020.
In contrast to online investment or money lending services which are regulated by OJK, or e-wallet services regulated by Bank Indonesia, Bitcoin is monitored and regulated by BAPPEBTI, under the authority of the Ministry of Trade. Bitcoin and other crypto-assets have obtained its legality as a commercial commodity in Indonesia under the Regulation of the Ministry of Trade Number 99 the Year 2018 regarding the General Policy on the Implementation of Crypto Assets Futures Trading.
Being legally registered in Indonesia provides Luno with a legal basis in the crypto asset industry in Indonesia, and it also plays a big role in bringing Luno closer to our users in Indonesia. We deeply appreciate the transparency and effort of the Indonesian government in making sure every crypto asset exchange operating in Indonesia is putting a high standard in order to protect the customers' funds.
The long journey to the “legal” status
In 2016, long before the regulations on cryptocurrency trading was issued, Luno, together with Indodax, were the first two crypto asset exchanges in Indonesia that worked together with BAPPEBTI.
We explicated the concept of crypto assets to BAPPEBTI and the government bodies, cleared out misconceptions around Bitcoin, Ethereum and “cryptocurrency”, and most importantly, we showed how huge this industry will be in Indonesia. There was great enthusiasm towards crypto assets from the general public in Indonesia; the loyal customers who have signed up since Luno was first established in Indonesia. The discussion carried on until the collaboration between BAPPEBTI and the industry players formalized a regulation on crypto assets exchange in Indonesia in early 2019 and eventually followed by additional iterations published on the regulation.
In its implementation, the regulation is divided into two phases; registration and approval from BAPPEBTI. At the time of writing, all cryptocurrency exchanges operating in Indonesia are categorized as “Physical Trader of Crypto Assets” and are required to register themselves. Only exchanges that are trusted, reliable, and have fulfilled specific criteria set out by BAPPEBTI are able to obtain a registration certificate before later on, enter the process of acquiring a license (approval).
In order to get this registration certificate, we had to undergo a lengthy process. The following are a few of the criteria and requirements we have fulfilled to get the registration certificate from BAPPEBTI.
Having a legal business permit in Indonesia
We have been operating in Indonesia as a PT (Perseroan Terbatas - Limited Company) since 2016. We have been serving thousands of Indonesian customers since then.
Minimum business capital
Every crypto assets exchange, including Luno, is required to have capital with the minimum amount of Rp25.000.000.000,- (twenty-five billion rupiah). This requirement is made to ensure that we are able to guarantee the safety of our customers’ funds.
A crypto assets exchange has to pass an audit process from a reputable auditor to verify their financial records. This is vital to ensure that we are free from any forms of financial mismanagement and fraudulent activity.
Verification from the Ministry of Communication and Information
Our information and technology system has passed the verification from the Ministry of Communication and Information. This demonstrates that our information and technology system is fully safe and exceeds the national standard required by the Ministry of Communication and Information.
Credible management team
Our management team had to pass a strict background check process. This requirement ensures that Luno is led by people with clear background and adequate experiences, and have a strong commitment to safeguard our customer’s money.
The registration certificate was obtained not long after Luno relaunched in Malaysia in November 2019. Luno becomes the only cryptocurrency exchange with the status of Recognised Market Operator from the Securities Commission of Malaysia. This makes Luno the only cryptocurrency exchange that is officially registered in Indonesia & Malaysia, underlining our commitment to providing a platform where our customers can buy or sell crypto assets legally.
Our next step
It is vital for us to mention that our effort to always comply with the regulations established by the government does not stop here. We are currently seeking to meet the requirements to obtain an approval license from BAPPEBTI.
With the registration certificate that we received from BAPPEBTI, we hope that the crypto asset industry in Indonesia will continue to grow, especially by providing trust and safety for the Indonesian customer in trading crypto assets such as Bitcoin.
We want to convey our utmost gratitude to all the parties who have helped us in the registration process and to all our loyal customers, especially in Indonesia, for all the support. We will continue to work hard to provide the best for all of you.
As our commitment to make Luno the best place for trading crypto assets in Indonesia, we are launching an Exclusive Reward program (#LunoRewards). This program is a benefit program designed especially for active traders (with a total transaction of more than IDR 20 million in one month). In this program, traders can enjoy rebate/cashback of up to 0.12% from the transaction volume, access to weekly market analysis, and access to our Artificial Intelligence trading signal support. If you are interested in the program, click here for further information about the program or follow our Facebook, Instagram, and Telegram group of Luno Indonesia.