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The Indonesian Financial Services Authority (OJK) has banned financial firms from using, marketing and/or facilitating crypto transactions. The financial regulator also reminded the public to always be on the lookout for fraudulent Ponzi schemes under the guise of cryptocurrencies.
Crypto Warning from Indonesian Regulators
Indonesia’s Financial Services Authority (OJK), the Jakarta-based government agency that oversees the financial services sector, warned on Tuesday that financial firms must not offer or facilitate the sale of crypto assets.
The warning was conveyed by OJK committee chairman Wimboh Santoso on the regulator’s official Instagram account. Reuters quoted OJK as saying:
OJK strictly prohibits financial services institutions from using, marketing and/or facilitating crypto-asset transactions.
Regulators are also reminding the public when investing in crypto assets. “Crypto-assets are inherently volatile commodities that can go up and down at any time, so people must understand the risks,” OJK said. However, cryptocurrencies cannot be legally used for payments in Indonesia.
Additionally, financial regulators are reminding the public to always be on the lookout for fraudulent Ponzi schemes under the guise of cryptocurrencies. To quote OJK further:
Be aware of allegations of Ponzi schemes in crypto investments.
OJK explained that it does not oversee or regulate cryptocurrencies. Regulation of crypto assets in Indonesia is carried out by the Commodity Futures Trading Authority (CoFTRA) and the Ministry of Trade.
The ministry is currently promoting the establishment of a digital asset exchange 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 more than 7.2 million people (2.66% of Indonesia’s total population) currently own cryptocurrencies. Additionally, the media cited figures from the Trade Ministry showing that crypto transactions reached 859 trillion rupiah ($59.83 billion) last year, a sharp increase from 60 trillion rupiah in 2020.
What do you think of Indonesian regulators banning financial firms from facilitating crypto transactions? Let us know in the comments section below.
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