Indonesian Bitcoin Traders Protest BTC Futures Capital Requirements

indonesia

Bitcoin traders in Indonesia are protesting what they call excessive capital requirements imposed by the government on cryptocurrency futures trading. The aggrieved brokers say the restrictive law is preventing anyone from participating in the market.


Stifling the Bitcoin Futures Trading Arena

According to The Jakarta Post, the Futures Exchange Supervisory Board (Bappebti) of the Indonesian Trade Ministry issued regulations to govern cryptocurrency futures trading in the country. Among these laws are minimum capital requirements for cryptocurrency futures traders and brokers.

Article 8, paragraph 1 of the regulations stipulate that crypto futures brokerage firms require a minimum paid-up capital of 1 trillion rupiah ($71.7 million). Also, article 24, paragraph 3 of the same set of regulations require Bitcoin futures traders to hold a minimum of 100 billion rupiah ($7.17 million), out of which the law mandates a minimum deposit of 80 billion ruppiah ($5.73 million).

Stakeholders in the industry say the transferred capital requirements far exceed those stipulated for futures trading in mainstream asset classes.

Speaking to Reuters, Oscar Darmawan, the CEO of Indodax, a cryptocurrency exchange platform compared the capital requirements to that of mainstream futures contracts which stands at 2.5 billion rupiah ($179,000).

Back in mid-2018, Bitcoinist reported that Bappebti was legitimizing virtual currencies by classifying them as commodities. While the need to offer consumer protection is legitimate, a 40,000 percent dichotomy in capital requirement for cryptos and mainstream commodities futures trading is seen by industry commentators as excessive.

According to Darmawan, these regulations are counterproductive to the growth of the virtual currency industry. Reports indicate there haven’t been any transactions in the Indonesian cryptocurrency futures trading market to date.

Weekly Bitcoin Trading Volume Reaches New Heights

Meanwhile, BTC trading volume in Indonesia is currently on the rise.

Indonesia weekly Bitcoin trading volume

Data from Coin Dance shows that Indonesians traded 102 BTC via Localbitcoins for the week ending February 9, 2019. This figure represents the country’s largest weekly trading volume beating the previous record of 43 BTC set in early October 2016.

In terms of the rupiah, the new weekly BTC trading volume stands at 4.5 billion rupiah. The country’s apex bank banned the use of Bitcoin for payments back in December 2017, but trading cryptos isn’t outlawed.

Do you think the minimum capital requirement imposed on Indonesian BTC futures brokerages is exorbitant? Let us know your thoughts in the comments below.


Image courtesy of coin.dance, Shutterstock

The post Indonesian Bitcoin Traders Protest BTC Futures Capital Requirements appeared first on Bitcoinist.com.

Source: Blockchain

Visualizing Bitcoin Adoption Across the Globe

bitcoin globe world

Bitcoin remains the most popular cryptocurrency in the world today with a network that spans across the globe. But just what the distribution of Bitcoin nodes tell us about the rate of adoption of the top-ranked cryptocurrency on a global scale?


Global Distribution of Bitcoin Nodes

According to a 2019 study by Themetafriend, there are 36 countries in the world with at least one percent of their population as Bitcoin users. This study assumed a relationship between the ratio of Bitcoin nodes in any two countries to that of the number of users in those countries.

Using this ratio, it seems theoretically possible to examine the distribution of Bitcoin users worldwide. The following is an estimate of the number of Bitcoin users in different continents.

Europe and North America

Europe and North America are hardly ever absent from any conversation related to technological advancements. Of the 36 countries where Bitcoin users make up at least one percent of their population, 26 are in Europe or North America.

These nations include Canada, France, Belgium, Belarus, Germany, the U.K., and the U.S. Others are Lithuania, Luxembourg, Norway, Romania, Iceland, Slovenia, and Sweden.

Looking at the current global nodes distribution as provided by Bitnodes, there is a high density of nodes in both Europe and North America. Also, of the top ten countries based on the number of nodes, only three (China, Singapore, and Japan), come from outside Europe and North America.

South America, Asia, and Australia

Back in November 2018, Bitcoinist reported that the total number of public Bitcoin nodes had surpassed 10,000. According to the latest figures from Coin Dance, the Bitcoin network currently boasts 10,071 listening full nodes and with over 61,000 nodes in total, according to other data sources.

Apart from Japan and Singapore, South Korea, Australia and India also have at least one percent of their population as Bitcoin users. China, however, does not fall into this category making India’s presence particularly noteworthy given the similarities in their population figures.

In South America, Brazil, Uruguay, and Argentina have the most BTC users. Venezuela does not appear to rank on a significant scale, however.

Africa

In Africa, only South Africa registers any significant number of users. According to the study, the southernmost nation in Africa has between 0.1 and 0.99 percent of its population as Bitcoin users. Places like Angola and Tanzania have between 0.01 and 0.099 percent.

With access to electricity still a luxury in many places on the continent, the results from the study come as no surprise. According to Bitnodes, the highest ranked African nation based on the number of Bitcoin nodes, South Africa, is in the 33rd position (out of 100).

Not the Full Picture of BTC Adoption

The methodology by Themetafriend uses node distribution to determine Bitcoin users. It should be noted, however, that such a methodology might not show the entire spectrum of adopting technology as multifaceted as Bitcoin.

For example, countries in Africa aren’t running Bitcoin nodes (maybe due to inadequate electricity supply and/or lack of hardware), but the three of the top five countries on Google Trends for Bitcoin are from the continent including Nigeria – the country marked in orange (low adoption) on the map.

Bitcoin adoption also involves such aspects as remittance, mining, acceptance for payments, infrastructure support etc. apart from running nodes.

For example, it appears that Venezuelans aren’t running a significant number of Bitcoin nodes, but the country continues to post massive figures on Localbitcoins.

Unsurprisingly, places like China and Iceland where electricity is cheap but using BTC is restricted tend to be the leaders in mining.

Businesses in countries like Japan and the Netherlands meanwhile are taking initiative in accepting BTC for goods and services.

There are more BTMs in the United States and Switzerland, for example, as there is more emphasis on building Bitcoin-based businesses. Meanwhile, Vietnam and the South East Asian region as a whole are more engaged in remittance.

What is the best way to gauge adoption? Let us know your thoughts below!


Images courtesy of Themetafriend, Bitnodes, Google Trends, Shutterstock

The post Visualizing Bitcoin Adoption Across the Globe appeared first on Bitcoinist.com.

Source: Blockchain