Indonesia’s Financial Services Authority (OJK) has prohibited financial firms from using, marketing, and/or facilitating crypto trading. The financial regulator also cautioned the public to always beware of fraudulent Ponzi schemes under the guise of crypto.
Indonesian Regulator’s Crypto Warning
Indonesia’s Financial Services Authority (OJK), the Jakarta-based government agency which regulates the financial services sector, warned Tuesday that financial firms are not allowed to offer or facilitate sales of crypto assets.
The warning was conveyed by the chairman of the OJK Board of Commissioners, Wimboh Santoso, on the regulator’s official Instagram account. The OJK was quoted by Reuters as saying:
OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading.
The regulator also cautioned the public 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,” the OJK stated. However, cryptocurrencies cannot be legally used for payments in Indonesia.
In addition, the financial regulator reminded the public to always beware of fraudulent Ponzi schemes under the guise of crypto. The OJK was further quoted as saying:
Please beware of allegations of Ponzi scheme scams in crypto investments.
The OJK explained that it does not supervise or regulate cryptocurrencies. The regulation and supervision of crypto assets in Indonesia are carried out by the Commodity Futures Trading Authority (CoFTRA) and the Ministry of Trade.
The ministry is currently facilitating the set up of a digital asset bourse, called the Digital Futures Exchange, which officials say will be launched in the first quarter.
According to crypto payments firm Triple A, it is estimated that over 7.2 million people, or 2.66% of Indonesia’s total population, currently own cryptocurrency. Moreover, data from the Ministry of Trade cited by the media show that crypto transactions reached 859 trillion rupiah ($59.83 billion) last year, a significant increase from 60 trillion rupiah in 2020.
What do you think about the Indonesian regulator prohibiting financial firms from facilitating crypto trading? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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