Another week, another major economy restricting cryptocurrency, and this time Indonesia banned financial services firms from providing crypto-related services to their customers.
In the tweet below, Wimboh Santoso stated,Wimboh Santoso’, Commissioner of the Financial Services Authority of Indonesia Jasa Kiwangan Office (OJK), that the agency has prohibited financial services institutions from using, marketing, and facilitating the trading of crypto-assets.
In a subsequent tweet, Santoso warned that his agency does not regulate cryptocurrency trading, and that the value of crypto assets can fluctuate widely.
The regulator also warns of Ponzi schemes.Ponzi(which is investment fraud that pays existing investors with money raised from new investors), associated with cryptocurrency investments.
Also Read: Indonesian Student Makes $1 Million Selling Selfies From NFT
Indonesia and Cryptocurrency
Indonesia is the fourth most populous country in the world and the sixteenth largest in terms of the size of its economy. 2022 group of countries G20.
It made the participation of small businesses in the digital economy one of the priority issues at that forum, as it has a majority Muslim population, and local religious authorities have stated that cryptocurrency is not a suitable currency or investment for believers.
The country’s government allows cryptocurrency mining, so the new advice restricts currency trading, but does not reach the level of a ban.
China has also opposed cryptocurrency for the same reason, and many financial regulators around the world have warned of its useless volatility.
This volatility has been fully demonstrated in recent weeks, as the value of Bitcoin has fallen by 28%, and Ethereum by 40%, and Litecoin by 31.5%.
Many cryptocurrency proponents have suggested that a digital dollar will do well in emerging economies, and Indonesia may have weakened that theory a bit.
Read also: Thailand regulates the use of cryptocurrency as a means of payment
0 Comments
Any Queries , You May Ask