Indonesian regulator bans firms from facilitating crypto sales
On Tuesday, Indonesia’s financial regulator (OJK) warned that financial firms would not be allowed to offer and facilitate the sale of cryptocurrencies. Financial firms may not offer and facilitate sales of crypto In a statement posted on Instagram, the...
On Tuesday, Indonesia’s financial regulator (OJK) warned that financial firms would not be allowed to offer and facilitate the sale of cryptocurrencies.
Financial firms may not offer and facilitate sales of crypto
In a statement posted on Instagram, the regulator said it strictly prohibits financial service providers from using, marketing, and facilitating the trading of cryptocurrencies. It also warned that the value of crypto assets often fluctuates and that people buying into digital assets should fully understand the risks.
Currently, Indonesia only allows crypto assets to be sold on the commodity exchange. Trading is overseen by the trade ministry and the Commodity Futures Trading Regulatory Agency, not by the OJK. The ministry is currently supporting establishing a separate exchange for digital assets, the Digital Futures Exchange, which officials say will launch in the first quarter.
Crypto is becoming more popular in Indonesia
According to data from Triple-A, Indonesia has the seventh-largest crypto user base, behind Brazil and Pakistan. It is estimated that 7.2 million Indonesians own cryptocurrencies, while according to the Indonesian Blockchain Association, the number of crypto owners in Indonesia in July 2021 is 7.4 million people, up 85% from 2020.
It was already clear that citizens cannot legally use cryptocurrencies for payments in the country. Still, earlier this year, the Commodity Futures Trading Regulatory Agency (BAPPEBTI) issued a whitelist of legal crypto assets for trading in Indonesia. This whitelist consists of 229 cryptocurrencies, including Bitcoin, Ether, Polkadot, Cardano, and Dogecoin, which can be traded on registered exchanges.
About Author
Stan Colenbrander
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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and blockchain startups.
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