Indonesia Central Bank issued warning on Cryptocurrencies and says, Don’t Buy, Sell, Trade

1960 Total Views

Cryptocurrency News

Indonesia’s central bank has announced a new statement warning its citizens and ‘all parties’ in the country against selling, buying or trading cryptocurrencies like bitcoin and other cryptocurrencies in the country.

Bank Indonesia (BI) in a public release, announced its longstanding stance of refusing to recognize virtual currencies like bitcoin as a legal tender in the country. Most importantly, the authority warned all parties ‘not to sell, buy or trade’ cryptocurrencies after marking them as a threat to ‘the stability of the financial system.’

The public release quoted: (Translated)

“Ownership of virtual currency is very risky and full of speculation because there is no authority responsible, there is no official administrator, there is no underlying asset underlying virtual currency price and trading value is very volatile so vulnerable to the risk bubble (bubble) and prone to be used as a means of washing money and financing of terrorism, so that it can affect the stability of the financial system and harm the public. Therefore, Bank Indonesia warns all parties not to sell, buy or trade virtual currency.”

The central bank’s first public warning on bitcoin came as early as February 2014. Meanwhile, the central bank approved adopters to be careful of ‘bitcoin and other virtual currency’ while declaring they will shoulder any risks associated with the ownership/usage of bitcoin. In October 2017, the central bank’s chief threatened action against bitcoin adopters after outlawing cryptocurrencies’ usage in payment altogether.

BI governor Agus Martowardojo told last year:

“When the BI has asserted Bitcoin is not a valid payment instrument, those who use it will be dealt with. I do not want any violations in Indonesia.”

Recently, the central bank has continued to step up its warnings against the usage of cryptocurrencies by banning ‘all payment system service providers’ including banks, payment gateways and fund transfer providers from processing cryptocurrency-related transactions.