Indonesia Expat
Business/Property

Indonesia bans local companies from trading cryptocurrencies in the country

crypto trading ban
Indonesia bans local companies from trading cryptocurrencies in the country

The financial authorities of Indonesia (OJK) announced a ban on cryptocurrency settlements in the country.

Thus, Indonesians do not have the right to pay in this way and conduct transactions within the country.

Officials announced this on the official website of the department. The regulator believes that dealing with bitcoins and altcoins is too risky due to the strong cryptocurrency market fluctuations. Responsibility for these actions, as well as all risks, should lie with the local companies that do business in this area.

For more than half a year, the Indonesian authorities have waged fierce rhetoric about cryptocurrency. So, in November last year, the National Council of Ulema (MUI) that cryptocurrency is a harmful phenomenon for the country, and also inherently bets, which, moreover, have too much uncertainty and are unstable as a currency. The organization called for such investments to be declared “haram“.

Also, some other Muslim organizations have stated that adherents of Islam should not engage in cryptocurrency, as it is wrong and illegal from a religious point of view. In their opinion, bitcoin and other cryptocurrencies are speculative and are not backed by other assets such as gold.

In addition to mentioning the usual argument for the notorious cryptocurrency volatility, the country’s regulator pointed out that Ponzi scams could thrive in the industry. Thus, investors should be aware of all the risks associated with the ecosystem before entering it.

Despite its negative attitude towards the world of cryptocurrencies, the Indonesian government allows the sale of bitcoins and altcoins on exchanges. The Commodity Futures Trading Regulatory Agency oversees operations. However, local residents cannot use digital assets for domestic payments.

According to the financial trading platform binomo, despite the negative attitude of the Indonesian authorities towards cryptocurrencies, Perry Vargio, Governor of the Bank of Indonesia, said that they are preparing to launch a digital version of their national currency. The official regulator of the country, the Central Bank, intends to control its turnover and transactions.

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