Bitcoin To Be Banned in 2018 By Bank Indonesia

News, Regulation | December 7, 2017 By:

Bank Indonesia, the country’s central bank, is planning to issue new regulations that would ban the use of digital currencies such as bitcoin for domestic payments starting from 2018.

Bank Indonesia head of transformation Onny Widjanar said there are currently no clear regulations in Indonesia with regard to the use of digital currency. He added that the central bank is still studying whether it will issue one broad regulation that concerns all digital currencies, or two regulations with one specifically devoted to bitcoin with the second addressing other forms of digital currency.

The new regulations were first revealed by Bank Indonesia governor Agus Martowardojo during the central bank’s annual meeting last week. The governor said that they will prevent arbitrage opportunities, unhealthy business practices, and business controls by parties outside the legal reach of Indonesia’s laws that could damage the structure of industries in the country.

The central bank already warned its citizens in 2015 to be careful about bitcoin and other digital currencies, as they are not perceived by bank officials as real currencies or legal payment instruments. It further declared that all risks related to the ownership and use of bitcoin should be borne by the owners.