The Financial Services Authority of Indonesia (OJK) has prohibited financial firms from using, marketing and / or facilitating the trading of cryptocurrencies, including through secure and trusted platforms such as Bitcoin Revolution. The financial regulator also warned the public to always beware of Ponzi fraud schemes under the guise of crypto.
Crypto Notice from Indonesian Regulator
The Financial Services Authority of Indonesia (OJK), the Jakarta-based government agency that regulates the financial services sector, warned on Tuesday that financial firms are not allowed to offer or facilitate sales of cryptocurrencies.
The warning was broadcast by the chairman of the OJK council of commissioners, Wimboh Santoso, on the regulator's official Instagram account. The OJK was quoted by Reuters as saying that:
"OJK has strictly prohibited financial services institutions from using, marketing and / or facilitating the trading of cryptocurrencies."
The regulator has also warned the public when investing in crypto assets. "Cryptocurrencies themselves are a type of commodity that has fluctuations in value that can go up and down at any time, so people need to understand the risks," OJK said. However, cryptocurrencies cannot legally be used for payments in Indonesia.
Furthermore, the financial regulator reminded the public to always beware of Ponzi fraudulent schemes under the guise of cryptocurrencies. The OJK was further quoted as saying:
"Please watch out for allegations of Ponzi scheme scams in crypto investments."
OJK explained that it does not supervise or regulate cryptocurrencies
The regulation and supervision of cryptocurrencies in Indonesia is carried out by the Commodity Futures Trading Authority (CoFTRA) and the Ministry of Commerce.
The ministry is currently facilitating the creation of a digital asset exchange, called the Digital Futures Exchange, which officials say will launch in the first quarter.
According to crypto payment company Triple A, it is estimated that over 7,2 million people, or 2,66% of Indonesia's total population, currently own cryptocurrencies. Furthermore, data from the Commerce Ministry cited by the media shows that cryptocurrency transactions reached 859 trillion rupees ($ 59,83 billion) last year, a significant increase from 60 trillion rupees in 2020.
What do you think of the Indonesian regulator banning financial companies from facilitating cryptocurrency trading? Let us know in the comments section below.
