Indonesia’s financial watchdog forbids financial institutions from facilitating cryptocurrency trading

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A Cryptocurrency Caution from an Indonesian Regulator

Financial businesses are not authorized to sell or enable sales of crypto assets, according to Indonesia’s Financial Services Authority (OJK), a Jakarta-based government organization that supervises the financial services industry.

Wimboh Santoso, head of the OJK Board of Commissioners, issued the warning on the regulator’s official Instagram account. According to Reuters, the OJK stated:

Financial service institutions are not allowed to use, advertise, or facilitate crypto asset trading, according to the OJK.

According to the regulator, the public should be cautious when investing in crypto assets.  “Crypto assets themselves are a type of commodity that has fluctuations in value which can go up and down at any time, so people must understand the risks,”  according to the OJK. Digital currencies, on the other hand, are not permitted to be used for payment in Indonesia.

Furthermore, the financial authority warned the public to be wary of bogus Ponzi schemes disguised as cryptocurrency. In addition, the OJK was cited as saying: “Please be wary of claims of cryptocurrency investing Ponzi schemes.”

The OJK said that it has no authority over or regulation of cryptocurrency. The Commodity Futures Trading Authority (CoFTRA) and the Ministry of Trade regulate and supervise crypto assets in Indonesia.

The ministry is now assisting in establishing the Digital Futures Exchange, a digital asset exchange that authorities expect to debut in the first quarter.

As per cryptocurrency payments startup Triple A, over 7.2 million individuals in Indonesia possess bitcoin, accounting for 2.66 percent of the country’s entire population. Furthermore, media reports citing the Ministry of Trade statistics reveal that cryptocurrency transactions totaled 859 trillion rupiah ($59.83 billion) last year, up from 60 trillion rupiah in 2020.

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