Indonesia regulator says financial firms banned from facilitating crypto sales


A representations of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration

JAKARTA (Reuters) - Indonesia's Financial Services Authority (OJK) on Tuesday warned that financial firms are not allowed to offer and facilitate sales of crypto assets amid a boom in crypto trading in Southeast Asia's largest economy.

"OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading," the regulator said in a statement posted on Instagram.

It warned that the value of crypto assets often fluctuates and that people buying into the digital assets should fully understand the risks.

"Please beware of allegations of Ponzi scheme scams in crypto investments," it added, without elaborating.

The warning follows similar concerns by the central banks of Thailand and Singapore.

Trade in crypto assets is surging in Indonesia, with total 2021 transactions reaching 859 trillion rupiah ($59.83 billion), up from just 60 trillion rupiah in 2020, media reported, citing trade ministry data.

Indonesia allows sales of crypto assets in the commodities exchange and trading is supervised by the trade ministry and the Commodity Futures Trading Regulatory Agency, not by the OJK.

The ministry is currently facilitating the set up of a separate bourse for digital assets, called the Digital Futures Exchange, which officials say will be launched in the first quarter.

However, crypto currencies cannot legally be used for payments in the country.

($1 = 14,357.0000 rupiah)

(Reporting by Gayatri Suroyo; Editing by Martin Petty)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Opinion: More parental controls don't solve social media woes
WEF 2022: YouTube CEO discusses Russia, recession and misinformation
U.S. agency asks Tesla for information on Canadian fire incident
Tesla submits application to expand German plant - rbb
Big tech ad revenue growth to taper as pandemic bubble pops -analyst
Meta working on Instagram access issues reported by users
CD Projekt's first-quarter profit more than doubles
Student in SG, 16, made to fake kidnapping for ransom in China officials’ scam
Musk sued by Twitter investors for stock 'manipulation' during takeover bid
Get your crypto house in order, old guard tells Davos debutantes

Others Also Read